"THE FED AND MONEY"

Creditbubblereport.com

"Money has throughout history demonstrated its dangerous side. Abuse money and “moneyness” at your own peril – although this fundamental lesson is invariably unlearned given enough time (and the seductiveness of monetary booms). The fiascos are always a little different, inevitably created by clever new wrinkles in the many faces of “money” and Credit. We are in the midst of another sordid episode. John Law’s experimentation with paper “money” in France ended with the spectacular bursting of the Mississippi Bubble in 1720. Today’s backdrop is much more complex: The Fed and global central bankers are working diligently to control an experiment in electronic “money” and Credit gone terribly awry. If it were only the printing press, it would be easier to appreciate what was developing and how to administer some restraint. Instead, the Fed has banked everything on its capacity to inflate marketplace liquidity, sustain massive government debt issuance, and maintain market perceptions of moneyness."