As world resources get depleted, the cost of these resources get more
expensive. This causes a natural increase in the inflation index. If you
look at the inflation index of the United States of America for the last 20
or thirty years, you will see an exponential increase in the rise of this
index. This rise is natural and is caused by the cost of natural resouces,
oil, copper, steel, ect., being depleted and not renewed. The Hogswart
economist Greenspan says that inflation is unnatural, and should be held in
check by opressive interest rates. When financial markets hear news of the
inflation index going up, these markets go down because the Hogworts
economist plan is to punish this inflation index increase by increasing the
interest rates. The market forces which have caused the switch from stocks
to bonds, have lowered the interest rate on treasury bills of intermediate
deternination, so it would be a natural response of the Fed to lower their
rates as well to adjust the supply with the demand. The Fed is doing just
the opposite, they are increasing interest rate at moderate pace, rather
than at a pace determined by the market place. The end result is that the
Fed will cause another stock market drop and depression, similar to the one
in 2001. The economy is barely on the road to recovery, and consumer
confidence in the Fed and the Federal Government and the American stock
exchange is at an all time low. What steps need to be taken to put the Fed
on the right track? besides murder.