<blockquote>'Conceptually, the way to eliminate the problem is simple: abolish the Fed and get rid of fractional reserve lending.
In practice, the idea is easier said than done, because the wealthy are in control of the system and they are the ones who benefit from inflation.'
- Mike "Mish" Shedlock,
Inflation Targeting Revisited; Three Major Fed-Sponsored Bubbles; Who Benefits From Inflation? March 13, 2013</blockquote>
'..the bubbles being created by the Fed will be far greater and more devastating than any other in history .. It is sad to conclude that the middle class is set up to get slaughtered even worse than they did when the previous two bubbles burst.'<blockquote>'This means that the Federal Reserve will keep interest rates at record lows for significantly longer than the time it took to construct any of its previous bubbles..
The ramifications for investors and the economy will be profound. Not only will the economy move gradually toward a pronounced condition of stagflation, but, more importantly, the bubbles being created by the Fed will be far greater and more devastating than any other in history. Equity and real estate prices are already stretched far beyond what their underlying fundamentals can support. But they are nothing compared to the distorted valuations being applied to U.S. sovereign debt. The bursting of the bond bubble will be exponentially worse than the deflation brought on by the Nasdaq and real estate debacles. It is sad to conclude that the middle class is set up to get slaughtered even worse than they did when the previous two bubbles burst.
The economy is heading for unprecedented volatility between rampant inflation and deflation courtesy of Ben Bernanke’s sponsorship of the $7 trillion increase in new Federal debt since 2008. Investors need to plan now while they still have time before the economic chaos begins.'
- Michael Pento,
Fed’s Bubbles to Slaughter Middle Class, March 13, 2013</blockquote>
Context<blockquote>
A Prophet Without Honor in His Own Land - By Bettina Bien Greaves</blockquote>