http://www.minyanville.com/articles/minyanville-moneydebt-Fed-inflation/index/a/24267/from/home
There's great debate about inflation versus deflation. Most who are buying stocks aren't doing so because they see good fundamentals, but are doing so because they're worried about inflation. Clearly the Federal Reserve is doing “unconventional” things (perhaps I should use better words such as crazy and irresponsible) which have a lot of people worried about a crashing dollar.
In order to clarify my position, I want to describe to you some mechanics of Federal Reserve operations, the wizardry behind the curtain. I recommend you send this to all of your friends so they can decide for themselves. This is long and tedious, but I think worth it.
The Federal Reserve is a private bank, albeit special. It has shareholders that care about profits and risk. These aren’t normal shareholders, but other banks or the boards of those banks. The Fed was given certain powers by Congress in 1913 to regulate the money supply of the US. That benign-sounding statement has vast implications on capitalism and liberty itself.
Capital can be loosely defined as wealth, unencumbered assets of various forms like
