No surprise this bunch of incompetents running the Fed can’t learn from history or see a pattern. They might have to acknowledge how they’ve been played like patsies by Wall Street. Easy money and moral hazard peddlers can’t afford to promote any understanding of their criminal negligence.

US Treasury Secretary Henry Paulson, a former Goldman Sachs banker, has become the front man for the further centralization of governmental financial powers under the Federal Reserve.

In a move reminiscent of the Bush Cabal’s creation of the Department of Homeland Security, Paulson’s proposal would make the Fed the new super-cop of financial markets — a policeman on the pad of the New World Order.

Getting rid of the alphabet soup of largely ineffective regulatory agencies like the SEC, FDIC, CFTC (Commodity Futures Trading Commission), and OTS (Office of Thrift Supervision), the Fed would supplant them with the Orwellian-named Prudential Financial Regulatory Agency, Conduct of Business Regulatory Agency, Federal Insurance Guarantee Corporation and the Corporate Finance Regulator.

There’s nothing like more centralization to hide more Bankster Conspiracies under one federal agency.

It should be remembered that the so-called “Federal Reserve” was the original “privatization” of the nation’s central bank system.

Will it fly and pass legislative muster? With a One Party System in America that pretends to be an adversarial process, Democrats and Republicans can certainly be coerced to give the Fed more power.

Federal Reserve Uber Alles?

Why not? The wise guy would say — that was the 50 year plan after all. And the Bush Cabal is just reading from the script.

Absolutely incredible, I guess socialization of losses for the rich capitalists has never before happened in history. Oh yeah, it has, check out Nazi Germany and Hitler’s rise to power, it is called fascism. The long debated questions of money supply versus inflation versus moral hazard are brand new? Printing money is never the answer especially when it only benefits the few. Buy the franc.

In the past few months,financial companies are laying off US workers and outsourcing jobs (such as IT) to other countries. Why should the tax payers money be used to bail out these companies that basically gambled with other peoples money and lost.

These same financial companies laying off workers and outsourcing jobs will soon be bit HARD by the customers they have loaned to, who are also losing jobs and being outsourced.
More write downs, anyone?

The US dollar is backed by nothing but the government’s ability to tax its citizens. The Chinese dollar is backed by US treasuries that are worthless. The Euro is backed by its ability to export to the US.

Top bankers are’leaving US for Asia’ after being bailed by the FED because they realize we are in a huge bubble the will soon pop!

Oil 250.00 gold 3100.00 silver 100.00

The Fed minutes said the economy will weaken, unemployment will worsen, and inflation will rise.
So what will short-term interest rates do?

From my trakcing last 30 years US, ASian, EUropean, S. American finacial crisis,
They share the common causes:
central bank excessive money supply created bubble.
It is easy to look at the market fuindamenttal market mechanism, which integrate macro, financial, industrial and trade economic, tracking monetary, economic, fiscal poicy impact on currency, commodities, commodities, oil, hoising, equities, bond)asset prices bubble formation mechanism.
I warned on Asian/China finance,capital marekt Nov. 2003 on US/China housining bubble overheating, rate hike and again last Sept on this blog that US housing price slump continue into this summer, drag into recession, stock market bear market correction, dollar plunge to new low driving oil, commodities to new high resutled inflationary recession.
details on
www.osawh.com/riskm.html
www.osawh.com/Fedcrisab.htm
www.osawh.com/mortdefa.htm
www.osawh.com/centmaf.html

What is funny is that everyone body calls the President an idiot. But if you ask anyone from the oil industry and they will tell you what, “mission accomplished”, means.

How is it that oil is at 134 a barrel but profits are up. That tells you the oil companies still pay 5-15 dollar a barrel. The only that has changed is how much we pay at the pump. Profits should remain flat if that was not the case!

Dollar weak
Oil record high
Oil profits record high
Endless War

Massive devaluation of the U.S. Dollar is imminent. That’s why you can’t pay too much for crude oil before it happens. Bear Stearns was just the warm-up act before the main event. Even the eaek dollar crowd won’t know what hit them.

“Wake up America… you have no idea what’s coming to our country, please wake wake up… “DEFLATIONARY DEPRESION” IS HERE AND HERE NOW NOW … UNLESS… you wake the hell up… you think!
“You can make a difference… YEP”… it now very, very late!

Where there’s smoke there’s more gvt bailouts and stimulus checks coming. Helicopter Ben we need more $$$. Our bank accounts are overdrawn, our homes have no equity, our credit cards are maxed, our schools are failures, our 401ks are used up, we have no health insurance, and our jobs are disappearing.

Every financial crisis has commonalities. Read “Devil Take the Hindmost,” or “Manias, Panics, and Crashes.”

http://alephblog.com/2008/04/24/book-reviews-manias-panics-and-crashes-and-devil-take-the-hindmost/

Warsh is too young, and too unexposed to economic history to be a Fed governor.

Forecasting aggregate supply and demand in volatile times is like trying to pick stocks. The monkey will beat you every time.
This one is a prolonged one, that’s the only prediction I’m likely to make.

to contain soaring prices of food and energy

Raise interest rate to 4%,
There were calls back in 2004 (early) for the Fed to immediately raise the emergency rate of 1% to 4% to prevent speculation. Greenspan took 2 yrs. set the stage for the biggest credit bubble in history. this fed will take the bubble blowing to its conclusion - the bubble in prices of every good and commodity while financial assets will be in massive deflation.