USA is entering in to the troubled waters.

Will the the Fed begin or postpone the implementation in 2015 of its plan of interest rate increase as the first step of the monetary tightening? Financial markets complains of mixed signals from the Fed. Even if the slowdown of the Chinese economy is seen as responsible for the late activity in the international stock markets, the main problem is stated to be the US economy. Is there any doubt behind the conflicting messages from the Fed?Is it concerned about the overheating of the economy?

If so, their worries cannot be considered as unfounded. After all, the US undertook in the last 40 years, four times the monetary tightening, and all of them ended in a crisis. Each time employment and production collapsed beyond the Fed's forecasts. The biggest disaster was brought by the fourth tightening implemented between 2004-2007. Now USA is entering into the troubled waters again.

Between the years 1979-1982, Federal Reserve Chairman Paul Volcker, had convinced the political authority. He was hoping to take greater steps in combating  unemployment and idle capacity by controlling the money in circulation instead of the Keynesian policies which had been applied for a long time. But the cost was great. Citi and other financial institutions were difficultly saved from bankruptcy. In those years, Latin American countries that were under the direct influence of the United States were plunged into a crisis for five years.

It applied in another monetary tightening program had been applied during the 1988-1990 period. Federal Reserve Chairman Alan Greenspan dragged into debt the money and credit institutions who were already struggling to survive. In order to avoid recession and save the bankrupting companies, the federal authorities made great efforts. At that time, it is said that the state of Texas had consumed all of quarterly government revenue.

Alan Greenspan, undertook another monetary tightening in 1993-1994. He hoped to obtain significant results upon the long term assets and borrowing costs through small-scale tightening. Fortunately, upon the opposition of major members of the Federal Open Market Committee, Greenspan gave up shortly the application. The US economy was saved from entering into a new recession.

The last one (2004-2007), was the most devastating. After the implementation, neither Greenspan nor his successor Bernanke understood how the financial system and the housing sector had become fragile. The world economy is still not able to get rid of the effects of the 2008 crisis started in the US. In the US, the policies, deregulations and tightenings upon which everybody is clinging to, continue but until when?