Harry Dent, Economy & Markets Daily, Released on 4/19/16
When the Fed was created in 1914, it was set to task of controlling short-term interest rates in an attempt to iron out financial cycles.
It succeeded for many years. But by avoiding the natural rebalancing (and occasional pain) from free markets, we just got a bigger bubble into 1929.
Then, when it finally burst, we got the greatest depression in all of modern history!
Since the Fed and other central banks were created, they have always manipulated short-term interest rates to try to encourage borrowing and spending in slowdowns – to make the natural economic cycle “go away.”
Harry Dent is a Fortune 100 consultant, new venture investor, noted speaker, bestselling author, and the founder and senior editor at Dent Research, where he dedicates himself to identifying and studying demographic, technological, and geopolitical trends. He has a free daily newsletter at www.harrydent.com called “Survive and Prosper.” Mr. Dent accurately predicted Japan’s collapse in 1989, the dot-com bubble-bust in 2000 and the housing bust in 2006 to 2007 (among many other things). He’s written numerous books, including The Great Boom Ahead (1992), The Great Depression Ahead (2008), The Great Crash Ahead (2011) and The Demographic Cliff (2014).