Congressionial Control = Hyperinflation, FED Control = Deflationary Depression
I am watching the political issues, as always. I could care less about fundamentals and market technical's at this juncture.
If Congress is successful in auditing and bringing down the corrupt banking cartel the FED, IMO we will get Zimbabwe style hyperinflation and similar Zimbabwe style rising stock market.
If the FED stops Congress in its audit the FED will eventually raise rates to prevent hyper-inflation (my WAG in 24-48 months. Best guess is one to two years into the next President's office) and save the dollar. The US will go into a severe deflationary depression worse then the 1930s.
A lot of Fools keep babbling about Fundamentals and technical analysis etc... in general, I think it is mostly worthless in the "Big Picture" of current events. I do recognize many talented Top Fools have done well regardless of the implosion. (Top Fools are NOT to be confused with the re-treads - Top Fool Accounts created in the last 12 months).
The corrupt private banking cartel the FED is at war with the Congress to keep itself outside and above the law. The FED, which caused the first Depression with credit expansion and cheap money, has created another massive credit expansion and implosion and is in full damage control mode trying to stop the carnage.
Congress is in self-preservation mode, by attacking the FED, they re-direct the blame for the current economy and also can shake down the FED for money for the district.
If the curtain is pulled back from the FED and the mostly corrupt and inept US Congress is put in charge of monetary issues, hyper-inflation will and a new currency must emerge. IMO, Congress will spend, spend, spend to try and save their districts with out restraint. Most / many in DC politics are useful idiots, whose job depends on signing the lobbyist written laws in order to get the funding for re-election.
If the FED survives, they will try for Japanese's style deflation (Ref comments by SF Fed Chairmen) at some in order to save the dollar, a Volkner type response will be needed and we will get higher interest rates and a severe Depression. The FED will not want hyperinflation it will destroy their ill gotten wealth and private cartel / monopoly.
If you have not seen the battles, here are some highlights:
Feb 2009. Grayson takes on the Cartel
Alan Grayson on the Worst Deal Since Manhattan Was Sold for $24 in Trinkets
May 2009 (3 million views on youtube.com)
- Rep. Alan Grayson asks the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligation...
21 July 2009 - (172,000 views on yourtube)
Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know."
19 Nov 2009- Ron Paul's amendment to audit the Fed brought to voice vote
Additional References -
Bernanke: Why are we still listening to this guy?
"Bernanke Threatens The Congress" We will cause an Economic Collapse if you audit the Fed!