Where's the Fed headed?

Bernake backed off his first view which was to raise interest rates if you remember. I'm in agreement with that, however, we are almost certainly faced with inflation or deflation. I don't see any other possibility. We're going to have one or the other.

We have a stagnant economy with no place to go unless we create some avenues [employment opportunities] which means jobs. The big question is how do we do that now that we've dismantled almost every entity that created jobs and employed people?

This is going to take some real brain power in Washington to try to re-create what we have lost, given away, and dismantled. We need the full cooperation of the banks, the people, the corporations and most of all....the damn cooperation of our do nothing representatives that have been useless for decades. The real weight on a recovery is those bastards in Washington who are running for office 100% of the time while the country is declining now by the hour.

In the meantime they've also managed to separate the people into various camps. So, we need to come together as a people for the good of the country. Wish I wasn't so old. This is a real calling to us all.

If we put our effort into investing in business and re-creating new businesses we may have slight inflation but that's could be a good sign and manageable. The phrase is "managing inflation". On the other hand deflation could really spiral out of control and break the back of the country....so, in my view those are our choices.

This is a time that will be mentioned, in detail, in our history. This is a make it or break it time. We're in a deflationary period now, do we want it to get worse? Everyday well know companies are closing the doors. We cannot continue down this path, we have to take drastic measures and that might mean getting our priorities straight first!

If the Bush tax cuts are renewed and we do not bring troops home those two things will be our first mistakes.