Bush to give more power to Federal Reserve - how scared are you?

[Dave Kaminski]

President Bush wants the Fed to control the US' money indefinitely and completely.

"Fed will gain the power to investigate any activities of financial institutions that 'threaten US economic stability,' gather information and combat risks to the financial system as a whole."

Protect the market, not the people

"But the plan does seek to address problems highlighted by the current crisis in which the Fed in an unprecedented move has begun making direct loans to securities firms in an effort to shore up a system badly shaken by billions of dollars of losses stemming from sour mortgage loans."

Comments?

[schola]

Skeeery stuff.

I haven't read too much about this new proposal. But needless to say, giving the Fed any extension of power is insane.They need to be going in the opposite direction. The Fed already has too much control over the markets.

[escapee]

It just means that The dollars will go down further with more injection of cheap money. I think Ben ( THE "CANCER" OF MONEY SUPPLY) is rescuing his banker buddies with more free money at the expense of dollars and the taxpayer money ( inflation is a hidden tax ). He should have let the banks die ( natural correction ) and preserve the strength of the US dollars ( an international currency ) to prevent an even bigger worldwide bust in the future.

I think the world economy will be going down rapidly in the coming years Many people will lose their job and having trouble making end meets due to hyperinflation. Those who are in heavy debt with big house and big cars will probably be the kind of people getting hit the hardest and may even end their life with suicide. This is a hyper-inflationary depression ( with the exception of housing we are seeing a deflation ). The food, energy & commodities will probably all go up like crazy. It's evident with the current price tag, isn't it ?

That's just my personal thought/prediction after listening to so many "non-mainstream expert's opinion", you can slap me 10 times if it does not happen.

[schola]

The hyperinflation scenario is scary. I've been buying as much gold and silver as my college-student-budget allows.

[Jennihul]

Originally Posted by schola

The hyperinflation scenario is scary. I've been buying as much gold and silver as my college-student-budget allows.

That must be some budget.

Jennifer

[Gene]

Originally Posted by Jennihul

That must be some budget.

Jennifer

I imagine that even a student could buy Old U.S. silver dollars and even some gold pieces that were used a money. I know there used to be a ten dollar gold piece.

[schola]

Originally Posted by Gene

I imagine that even a student could buy Old U.S. silver dollars and even some gold pieces that were used a money. I know there used to be a ten dollar gold piece.

I've been buying mostly junk silver. Plus some 1/10 and 1/4 ounce gold eagles and krugerrands.

APMEX.com is the site I've been using, but their online order form is down at the moment.

If you have any extra money laying around, I'd put some into gold and silver, because in a few years your Federal Reserve Notes are going to be worthless.

[steve0617]

Wow people, slow down. The USA is not going to economically evaporate!

Yes, there are some nasty things being reported right now. The truth is, some banks will fail. The market will most likely fall much more. Some homes will need to lose 30-40% of their highest value before they can be sold.

BUT

Any of you young pups that weren't around in the 70s don't remember 20% (yes, 20%) home mortgages. A prime rate in April 1980 of 20%. Double digit inflation. Banks failing. The S&L crisis. Gas that may not even be available today but was tomorrow.

Stuff has been a LOT worse economically just in the past 30 years than they are now. I'm not saying everything is all rosy but we certainly aren't circling the drain!

The Paulson proposal today will be batted around forever and get chopped up before anything actually gets passed. Some it we might actually need!

But fair open markets will still prevail, but perhaps with some hand slaps along the way.

[Still Growing]

Which Fed Department?

Please tell me its not the Federal Reserve... If so I'd be even more upset since the Federal Reserve is ran by Privately Held banks. This would be an extreme conflict of interest in my opinion.

It already ticks me off that our government outsources the backing and ultimate management of our money to the Federal Reserve. Its a complete misrepresentation to call them "Federal".

[Dave Kaminski]

Yes the Federal Reserve is exactly who we're talking about.

[escapee]

Stuff has been a LOT worse economically just in the past 30 years than they are now.

US had stronger economy ( creditor of the world ) 20 years ago when Paul Volcker saved dollar by raising the interest rate to as high as 20%. I don't think the Fed can do that now with the US economy on life support system ( trade deficit, trillion dollars in debt, wars , shifting of jobs oversea and etc ).. I think we have a different ball game this time but i agree we will all recover and learn something from this...

FSO Editorials: "Can the Second Coming of Paul Volcker Save the Dollar?"" by Antal E. Fekete 12/14/2006

[escapee]

Why Billionaire Jim Rogers left America ?

YouTube - Billionaire Wall Street Guru Flees The Coming Collapse

[Cassie]

I'm more spooked by the ignorance of the average American as to who the Federal Reserve is and what a central banking system entails. Until we break our appetite for insurmountable debt and dependence on Federal Reserve notes (ie, 'interest laden' fiat currency), history is doomed to continue repeating itself.

William Still has an excellent historical documentary regarding the Federal Reserve, entitled The Money Masters.

I'd suggest taking time out of your busy schedules to watch the above link and familiarize yourself with your history. Now is the time to brace for the hard times ahead.

Jim Rogers is a brilliant economist who was able to foresee the writing on the wall. He escaped because he could - but millions of Americans will not be as lucky. The reckless irresponsible spending of the United States and its invisible elite will drag the entire world into an extended global recession or worse, I have no doubt.

Your intellect is your most precious commodity.

"By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” ~ John Maynard Keynes