Gerald Celente is a favorite of mine and I think that we should all listen to what he has to say and get prepared
He’s been right on several big predictions in the past….is he right this time also?
Why not be prepared just in case?
Taleb: Federal Reserve Will Disappear in 25 Years
Tuesday, 18 Jan 2011 09:05 AM
The Federal Reserve will cease to exist within 25 years, along with any other institution that fail to recognize risks tied to their actions, says economist and author Nassim Taleb.
Federal Reserve officials failed to foresee the recent economic crisis and ensuing recession, even thought risks tied to the housing lending policies were apparent prior to the crisis.
In fact, the Fed isn’t alone.
“A million people on this planet call themselves economists” these days but they fail to recognize the risks associated with their actions, including excessive borrowing with the aim of near-term economic growth, Taleb tells the Washington Ideas Forum.
“The Romans had a saying: ‘The grandchildren should not bear the debt of the grandparents,'” Taleb says.
In the future, institutions that aren’t capable of recognizing risks attached to their actions will disappear and be replaced.
“The Fed probably will be gone 25 years from now,” Taleb says.
The Federal Reserve is presently buying debt from private banks in order to spur those banks into lending more fuel economic growth.
While critics say such policies weaken the dollar and adds to the country’s mounting debt, monetary policy authorities say the program is needed to lower unemployment rates.
“Cutting off an easing program is a step in the direction of tightening,” Fed Governor and Gramley senior economic adviser with Potomac Research Group Lyle Gramley tells Bloomberg.
“And you’d be doing it in the context of a financial market that’s pushing up long-term rates already.”
By Forrest Jones
Remember to Watch the other hand…
BEIJING: Chinese and US businesses signed deals worth $600 million in Texas on Monday, state media reported, a day ahead of President Hu Jintao’s crucial state visit to Washington. The six agreements were signed during a visit to the oil-rich state by a delegation of Chinese businessmen led by vice commerce minister Wang Chao, Xinhua reported.
“The deals include two cotton import agreements, an agreement on import of CKD kits, an agreement on development of efficient crystalline silicon solar cells and PV generation system, a porcelain product import agreement,” the report said.
They come as Hu and US President Barack Obama prepare to meet for talks in Washington at a small dinner on Tuesday and again on Wednesday, in a visit that will touch on a series of contentious issues between the two nations.
Gripes over the value of the yuan, trade disputes, US arms sales to Taiwan, the Dalai Lama’s US visit, the award of the Nobel Peace Prize to Chinese dissident Liu Xiaobo, Internet freedom and naval rivalries in the Pacific, have dogged recent relations.
On Sunday, Hu acknowledged the two countries had “sensitive issues” and differences that needed to be properly managed, in written replies to questions provided by The Wall Street Journal and The Washington Post.
President Barack Obama will welcome Hu on Wednesday at the White House with the full pomp of a 21-gun salute and a black-tie state dinner, unlike former president George W. Bush who reserved state visits for leaders of democracies.