Great opinion piece on the Federal Reserve Bank by George Will

I highly suggest that you read it.

Quote:

Because Ben Bernanke’s public persona is as mild as milk, the transformation in American governance in which he has participated is imperfectly understood and hence insufficiently deplored. The change is dramatized by two recent developments.

One was the campaigning by several constituencies for and against what supposedly were the two leading candidates — Larry Summers and Janet Yellen — to replace Bernanke as chairman of the Federal Reserve. The Fed can no longer be considered separated from politics.

[….]

The Fed has become the model of applied progressivism, under which power flows to clever regulators who operate independent of political control. The Fed is, however, a creation of Congress, which may not forever refrain from putting a bridle and snaffle on a Fed that increasingly allocates credit, wealth and opportunity.

via George Will: The Fed has become a creature of politics – The Washington Post.

There are some of us, who believe that we should end the fed and go back to the gold standard. I happen to be one of those people.

Trickle down recession

This is what happens when Washington DC scares the living crap out of everyone:

SINGAPORE: Oil prices fell in Asian trade today on signs of weaker US energy demand and as positions hardened in a fiscal showdown in Washington that could push the world’s biggest economy back into recession.

New York’s main contract, light sweet crude for delivery in January was down 16 cents to USD 87.72 a barrel in the morning and Brent North Sea crude for January shed nine cents to USD 108.72.

A weekly US government report released yesterday showed a surge in supplies of gasoline and other products, indicating softer demand in the world’s biggest oil consuming nation.

The supplies of distillates, which include diesel and heating fuel that are closely watched at the onset of winter, rose by three million barrels, while gasoline inventories leaped by 7.9 million barrels, five times more than forecast.

“Oil prices fell… after data showed a huge increase in gasoline stockpiles in the United States last week,” Phillip Futures said in a market commentary.

The political impasse in Washington over avoiding mandatory fiscal cliff of tax increases and spending cuts in January that may toss the US economy back into recession was casting a cloud on sentiment.

via Oil prices down in Asian trade – The Economic Times.

This is what happens when you scare the living crap out of everyone with a chicken match. If you are invested in oil, get out while you can. On the other hand, gas prices are going to come down and for we middle class, that is a very good thing. But, for those in the market, it sucks. Good time to get out of futures and get into gold or something.

Oh yes, and the Democrats are owning this one too.

Another good reason we need a new President

Gloomy feeling on Wall Street prior to GDP Q3 reports

A new president would bring confidence to the markets and to investors, thus helping the economy.

Not bad for a high school dropout eh? 😉

Movie: The Crash of 1929 & The Great Depression

There are a good deal of parallels between this and what is going on now in this country.

It could and most likely will happen again.

Enjoy this six part series by PBS on “The Crash of 1929 & The Great Depression”: