Chicago Federal Reserve Bank President Charles Evans says the Fed will probably “overshoot” its “informal” two percent inflation target in a desperate effort to jump-start the economy and get credit moving again.
“In the last several months I’ve stared at our unemployment forecast and come to the conclusion that it’s just not coming down nearly as quickly as it should,” Evans told the Wall Street Journal. “This is a far grimmer forecast than we ought to have,” he said, so Evans favors “much more accommodation than we’ve put in place.”
In other words, the Fed will continue its destructive policy of “quantitative easing.” It will create money ex nihilo — out of nothing — and further devalue the dollar. The Fed will use funny money created out of thin air to purchase government bonds, mortgage-backed securities and corporate bonds. Zombie banks will feed this funny money into the stock market casino.
The Fed knows “that they can use the stock indices as a ruse to dupe the dopes into thinking all is well while promulgating the belief that the Fed is here to help,” writes Barry M. Ferguson. “In real terms, the US dollar has lost more than 50% of its value since 2001 while the Dow has remained at the same level of ten years ago.”
For those not fooled by the Fed and the corporate financial media, the only safe haven is in gold and silver. So long as the Fed continues to destroy the dollar, gold and silver will follow an inverse trend reaction to dollar devaluation, as Ferguson notes.
Article written by Kurt Nimmo
Wednesday, October 6, 2010