- "Let me just say from the outset that the Federal
Reserve has confirmed our Stock Market Crash forecast by raising the Money
Supply (M-3) by crisis proportions, up another 46.8 billion this past week.
What awful calamity do they see? Something is up. This is unprecedented,
unheard-of pre-catastrophe M-3 expansion. M-3 is up an amount that we've
never seen before without a crisis - $155 billion over the past 4 weeks,
a $2.0 trillion annualized pace, a 22.2 percent annualized rate of growth!!!
There must be a crisis of historic proportions coming, and the Federal
Reserve Bank of the United States is making sure that there is enough liquidity
in place to protect our nation's fragile financial system. The amazing
thing is, the Fed's actions mean they know what is about to happen. They
are aware of a terrible, horrific imminent event. What could it be?"
- "One can draw no other conclusion except that the
Fed is acting irresponsibly in its managing the money supply, in fulfilling
its duty to "maintain a stable currency." I reject the notion
that the Fed is acting irresponsibly. No, something is up, bigger than
we have ever seen in the history of the United States. Let me ramble. Perhaps
they simply see the ominous technical landscape we have been warning about
in recent issues, and are attempting to pull out all the stops to avert
the predicted crash. The recent rally in just about everything is similar
to 2003's market behavior when the Fed pumped massive amounts of liquidity
into the system during the first half of the year. This time seems different.
The amount of liquidity is too large. The Fed is deflating the value of
the monetary base by a fifth! Why are they willing to do this? Wisdom says
something bad is up - big time."