Do Not Rely on The Federal Reserve

We make a habit of using Federal Reserve edicts as gospel, even though they are often proven wrong. This has been proven the case in almost half the decisions we have gotten, whether they have been those of Alan Greenspan or Ben Bernanke.

We have to remember that economists are fallible, even when they direct the Federal Reserve.

In the past, those in the Fed who worried we may have deflation and who therefore inflated the economy, instead added too much currency. In fact the Fed, almost automatically, has been on the side of targeting some inflation, in an attempt to prevent deflation.

Thus, the Fed has been the chief culprit causing the bubbles which invariably lead to busts and eventual depressions.