SOS Myth - Fed is in control

It is clear to some that the Fed's policy is to weaken the US dollar, and there is evidence that it will continue to do so for quite some time. Gold and equities react to this by going up. Don't you think that until the Fed's stance changes, all the talk about the stock market topping should be suspended?
Responder: Vadim Pokhlebkin	Date: 10/16/2009
Regular EWI's Message Board readers will remember seeing questions like "Won't the Fed prevent the crash?" two years ago, before the DJIA tanked the first time. The Fed did intervene -- remember when central banks first tried stop the crash? December 2007, with the DJIA near 13,500. Bob Prechter wrote about it his December 2007 Elliott Wave Theorist: "The world’s 'big five' central banks -- the Federal Reserve, the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank -- have just made the announcement of their lives. Apparently working all night on Tuesday-Wednesday, the Fed arranged all these players’ cooperation in order to come up with a plan to bolster confidence among the world’s creditors and borrowers. The Wall Street Journal (12/13) calls it 'the biggest coordinated show of international financial force since Sept. 11, 2001.' ...This consortium of money monopolists announced to the world that it would provide billions of dollars worth of 'liquidity'... essentially presenting them free passes to make money in the LIBOR market and elsewhere. In this one blazing statement broadcast worldwide, it seems that the dream/nightmare of believers in perpetual inflation has come true: With unlimited fiat credit at their disposal, the world’s central banks are proudly coordinating a drive to create more inflation." Despite central banks' best efforts, the DJIA still lost 58% (Oct. 2007 high to Mar. 2009 low). Yet most people continue to believe that the Fed is in control. Bob Prechter explains in Ch. 13 of Conquer the Crash why they were powerless against the first round of deflation -- and why they are likely to fail again. MyView It has been proven again and again by Bob Prechter that Fed or combined effort of largest central bank in the world can stop the change in Social Mood Most Keynesian Schools oversimplified economic theories that does not apply in reality (also proven by Steve Keen in Debunking Economics)