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Does the Fed Have Grave Concerns About the Economy?

rchuang1654 Wrote: Oct 27, 2012 1:20 AM
There is now increasing talk that the US dollar may become an asset-backed currency again. I'd do it, but backed by a combination of gold, silver, platinum, palladium, copper and nickel (the most common metals used for coins and bullion blocks used in monetary exchange).

On Tuesday, the Federal Reserve re-affirmed its commitment to using unconventional efforts to stimulate the economy.

In the latest Fed statement, the central bank said it would keep buying $40 billion in mortgage-backed debt per month to push interest rates lower.

The Fed also repeated its vow to keep interest rates near zero until mid-2015.

Although that may seem like the Fed is sending a signal to markets that they’re intent to drive the economy, no matter what the cost – that may not be what the Fed is really saying.

According to former Fed Governor Kevin Warsh the move isn’t a show of strength – it’s something far more ominous.

“I think the Fed...