In my life time I have never see such a horrible job done by the Federal Reserve than has been done in the last decade. It first started with Alan Greenspan’s intentional sabotage of the final years of the Bush Administration. By keeping the federal fund rate at 1% while the housing bubble rose to catastrophic proportions Mr. Greenspan guaranteed disaster. The opposite reaction he had in 1989 to 1991 during the Savings and Loan crisis. Now we have Time’s “Man of the Year” Ben Bernanke completely blow up the Federal Reserve. With Bernanke’s actions we are almost assured of depression with inflation.

Let’s take a step back and look at “bubbles”. Money, rail road, housing, commercial real estate, stock and other “bubbles” have been around for centuries. Why create them if they cause damage? Bubbles take advantage of “irrational exuberance” to quote Mr. Greenspan. And the great thing about them is only a few insiders know that they are artificial. Everyone pretends the gains in the hot asset of the year will go up forever and the smart money sells. No one really knows when it will end but it always does.

Mr. Greenspan’s famous “irrational exuberance” quote was in 1997 concerning the NASDAQ bubble. He missed the peak by three years.

Basically for the banking industry a central bank, like the Federal Reserve, decides to print more money than the year before. This can be 5% to 120%. Most economist feel a modest inflation rate is desirable because it “lubricates” the economy. This is a fancy way of saying a employer can have a price cut or wage cut without changing anything. Just keep the prices on the menu the same for the next year or someone’s wage. If the inflation rate is predictable and modest business can easily adjust and plan future activities.

Where the devious part comes in is what is known as “Keynesian” economics which is what the current administration is practicing on the economy. John Maynard Keynes was an economist for FDR in the 30’s and 40’s. He came up with “priming the pump” and other nonsense that Nancy Pelosi spews to this day. His basic belief was that the federal government should continually increase spending “tricking” manufacturers into producing more than they would have in the belief that they were too stupid to realize the money stock was becoming devalued. This meant basically paying manufacturers with devalued dollars. The problem is this method builds distrust as was seen in the 1960’s and pretty soon everyone from producers to the unions automatically assume there will be more inflation than anticipated and contracts are adjusted accordingly. The federal government has to spend an ever increasing amount to “trick” manufacturers and a vicious cycle is created triggering inflation.

But let’s assume the only ones who know that the money supply was increased were the insiders at the Federal Reserve in New York. These guys are buddies with their pals at Goldman Sacks. They socialize at the finest New York restaurants, date, marry, play softball and intermingle. The Federal Reserve guys tell the Goldman Sacks guys what is happening on the Open Market Committee and with the Federal Reserve Chairman. Secrets don’t last long when there’s money to be made. So the Goldman employees know to buy now with valuable dollars before they depreciate. The same holds true for bankers. The bubble occurs and no one knows exactly when it will burst but it will. So the inside crowd sells off assets sometimes to soon or on time but they do sell off. And the public is left holding worthless assets. That’s how it’s supposed to work which is why we have a Federal Reserve and not “Free Banking”. Corruption and greed. This last housing bubble didn’t quite work out that way which is the real reason Bush Treasury Secretary Paulson freaked out and got the bail out billions to pay off a bunch of pissed off investment bankers.

And now we are in a dollar bubble just waiting to burst. Its 1931, 10% unemployment, bad economy and for the most part blissfully ignorant of how bad it will get in the coming years. And there is the federal government doing everything wrong. Printing money, buying unproductive junk, producing temporary jobs. Basically moving more and more of the economies resources from the productive sector to the unproductive sector. All the while increasing taxes and further retarding growth. And to top it off proposing new trillion dollar programs that add uncertainty to the business community. This is going to be a big fall.

The main point is that we don’t need a Federal Reserve. In the past banks would print their own notes and back them with gold, silver or even regional bank notes. So why do we have a Federal Reserve setting interest rates and exploding the money supply? It makes no sense.

One of the reforms that will need to occur if America is to remain viable is to strip the Federal Reserve of all it powers except as a partner to assist with bankrupt banks. We don’t need it. The damage far outweighs the benefit. We need to have a “Free Banking” movement in the United States and get back to “hard money” banking policies.

In the past I have supported the Federal Reserve because for most of my life from 1981 to 2001 it was rational and generally respectable in its operations. Wow was I ever wrong. Time to get back to Andrew Jackson’s values and the idea of killing the federal bank for another 77 years or so.

As has been pointed out by myself and many economists the Federal Reserve is dramatically increasing the monetary base. What does this mean? If the Great Depression is indicator inflation with high unemployment as the federal government continues to “crowd out” the private sector in its insatiable appetite for good and services. The ultimate end game is fascist control over the economy like that which occurred in America and Germany in the 1930’s.

Obama and the democrats have authorized another trillion or so of debt. Soon we will be approaching 100% debt of the yearly GDP. That would be the same as me making $100,000 and owing $100,000. Not such a bad thing if the debt was over a long period of time but in the past year the Federal Reserve has had trouble selling long term bonds. Most have been seven years or less. To further compound the problem the current administration is looking to raise taxes. This will stunt economic growth. As the pool of taxpayers dwindles more and more of this burden will be carried by fewer and fewer citizens. Income inequality will go down because there will be less prosperity. This will be celebrated by Obama and fascist economist like Paul Krugman as a great victory. There will be less rich people and more equality.

And that is the goal “equality” and power. Everyone knows the scenario. Thanks to Glen Beck and Neal Cavuto if people want it they can get a pretty decent overview of the game plan of the fascist. None of this is new. What will we do about it?

At a recent political gathering I was asked about the Federal Reserve and its function. Alex Jones and his crowd have been demonizing the Federal Reserve and is a proponent of putting the Fed under congressional control. This would be the worst possible scenario possible. Congress would print and spend every election cycle.

The gold standard? A lot of economist favor going back to the gold standard. And it has its merits. The problem though is you are tied to gold so as the commodity, like all commodities, gyrates up and down against the world of currencies your imports and exports gyrate along with the currency. When gold is high imports are cheap and exporting industries are hurt. When gold is low exports are helped and imports expensive. Not the most stable position for a country to be in.

Regional banking worked from 1836 to 1913. Yes there were problems but we had a competitive banking system. Instead of the monopoly Federal Reserve a receivership bank could be set up to monitor reserve requirements and currency stocks. When there is a failure the receivership bank would liquidate assets and reimburse a set percentage of bank holdings below 100% of value but more than 80%. The loss of value would partially eliminate moral hazard conflicts. After closure and investigation of the failure if banking laws were broken the guilty would be charged and jailed. This system would be much more competitive and currency would not continually lose value like under our current system. According to Dan Mitchell of the Cato Institute we have lost 92% of the value of our currency since the Federal Reserve was formed in 1913.

Finally if the Federal Reserve is to be maintained congress should restrict its operations. Set the reserve requirement once and print money at say 4% increase plus or minus 1%. No fed funds, no discount window. Remove the Federal Reserve from all functions except to increase the money supply 4% in good times and bad.

My 2 cents on the Federal Reserve. Also according to these Federal Reserve charts the inflation rate looks to be going to 20%. What a shocker. The inflation rate during the FDR years varied on various commodities about 10% to 15%. Hmmmm. Are these guys that good?

As I watch Glen Beck on television and radio personality Robert D. Raiford of the John Boy and Billy show struggle with economics and the different messages they get from economic “experts” I will struggled to explain in layman’s terms as best I can. What is really going on with all these economics and why the information is so different from one source to the next? I will do my best to make what is occurring as clear as possible.

Glen Beck struggles with the concept of the Federal Reserve and its Chairman Ben Bernanke printing trillions of dollars and the damage it will do to the economy. To understand his motivations it’s necessary to go back in time to the Great Depression and John Maynard Keynes.

During the 1920’s the stock market had a huge bubble as we all know that burst in 1929. Everyone blames the Great Depression on the stock market. But for Mr. Bernanke and thousands of economists we know that’s false. Government actions make a routine cyclical recession into a depression eventually leading to the rise of Hitler and WWII. The average unemployment rate under Roosevelt was a catastrophic 17.2%! One of the great if not the greatest tragedy in human existence only rivaled by the Black Death that swept the world several times in the 1340’s, killing 30 to 60% of Europeans as well as the 17th and 18th century plagues. Unlike the plague the depression and world war was totally man made catastrophes.

What the government did to make a regular cyclical recession into disaster was three huge blunders. On the federal level Hoover and Roosevelt raised taxes on the rich from 25% to 55% then Roosevelt to 75%. Sound familiar? Hoover increased federal spending 55% on various government projects like the Hoover Dam. Sound familiar? George Bush did the same with the wars, education and drug programs for seniors. Roosevelt further increased federal spending with his New Deal programs, increased business regulation and increased taxes on the wealthy. Sound familiar? Hoover raised tariffs 90%. Sound familiar? Obama was battling it out in the primaries bragging he could raise tariffs the fastest. It’s as if Bush and Obama are following the script of Hoover and Roosevelt to a T.

And one aspect that is lost in all this is the Federal Reserve did some truly asinine moves with the money supply. When the recession hit the Fed decreased the money supply 30%! Ouch! The exact opposite of what should have been done. Later in 1937 the Fed doubled the reserve requirement again throwing the country into depression. Monumental blunders that were not lost on Bernanke who studied the Great Depression during his college years. Bernanke is determined not to repeat the blunders of the past but is going in the opposite direction with a vengeance. And here is where economist differs in their approaches.
Bernanke and democrats in general are students of John Maynard Keynes the great arrogant economist during the 1930’s and 40’s. These Keynesian economists believe, although they will deny it, that government and people of superior intelligence such as themselves are equipped to deal with all the economic problems of the world. Super smart people like Bernie Madoff, Chuck Schumer, Michael Milken, Bernard Ebbers, Dennis Kozlowski, and Kenneth Lay from all walks of life feel entitled to rip off or impose government policies on people because they all have a underlying contempt for the unwashed masses. They feel superior and entitled to power and privilege.

John Maynard Keynes was fond of tapping his two fingers on the desk when conducting business hearings during WWII when contractors begged for government approval to raise prices to keep up with ramped inflation that was occurring on the black market of the time. The money supply was up 121% but inflation must have been a figment of these contractors’ imaginations. The finger tap on the desk literally represented his signal to his colleges that the head ant on top of the hill was signaling with his antennas to his comrades below that the shit was about to roll down hill. In other words he thought the person pleading was full of shit. This disrespect for working folks and their companies is blatantly apparent to readers of Keynes. And that is why so many politicians are drawn to Keynes. Central planning and a feeling of superiority and privilege over the stupid ignorant masses that are too stupid to see the big picture.

Radio personality Robert D. Raiford complains of Keynes “paradox of thrift.” Essentially this theory states that if we all save our money it may be personally good for us as individuals but is bad for the economy. Raiford, a highly educated man with a master’s degree, must have received some pretty bias economic education and like millions of Americans struggles with even the most basic understanding of the subject. The problem with Keynes is his theory like so many of his theories doesn’t hold up to reality. Increased savings go into banks. Banks are in the business to lend money in normal times. Someone will borrow the money and spend it. Second if everyone saved prices will drop. People would start to be attracted to lower prices and spend. Even the biggest savers in the world have a marginal propensity to consume. Raiford because of economic ignorance prevalent throughout society fails to connect the dots and discard this Keynesian myth.

And there you have it. A lot of economic disinformation is being taught and used by politicians, personalities and even our Federal Reserve Chairman. Mr. Keynes did a lot of good brilliant work on developing a national economic model overview referred to as the Gross Domestic Product. He is an economic giant and his concepts are taught but he was wrong on the paradox of thrift, liquidity trap and many of his depression era theories. Our Federal Chairman is a strong follower of these theories. God help us all.

Liquidity trap. What is it and why is it significant? A liquidity trap is a situation in monetary economics in which a country’s interest rate has been lowered nearly or equal to zero to avoid a recession. Sound familiar? Our Federal Funds rate or commonly referred to overnight rate of lending, is currently 0.20%. And no one is lending. The market is not stimulated. Banks are keeping assets in short term cash accounts and avoiding long term investments making the recession worse. Mr. Bernanke is reliving the same liquidity trap that Keynes experienced in the 1930’s. So Mr. Bernanke is telling all those who will listen to pump trillions into the economy to get the economy moving again. And there you have the well intentioned motive of Mr. Bernanke although like Keynes the well intentioned theories will prove to be a monumental disaster for the country.
Why are banks really holding out? Politically you could argue the dysfunctional nut jobs in Washington DC are destroying banking confidence with crazy bail outs, buy outs, insane tax policies, insane mark to market accounting rules and you would be partially correct. The politicians in Washington are a disaster. And it’s both parties. Both parties need to be retired to the ash heap of history along with the Whigs, Federalist and Bull Moose political parties. The Democrats and Republicans of today are completely and totally incompetent to do anything. The federal government should be frozen and stored away in some deep freezer only to be thawed out after the adults have cleaned up the mess they created. So yes the political situation is hurting the economy. But that’s not the major reason banks are holding out.

Banker being bankers are looking at possible future inflation. Why is this so important to a banker? Bankers have been burned so many times by government it just comes naturally. In the 60’s and early 70’s banks made low interest loans only to be burned by inflationary federal government and Federal Reserve policies that created inflation in the late 70’s and early 80’s. Bankers made 5% loans in 1973 only to see loan rates climb to 9% in 1974 then 18% in 1981. The inflation rate went from 3% to 15%. So if you’re a banker and you made that nice 5% loan for 30 years guess what? Eight years into the loan the inflation rate is 15% and you’re in the red. Your books are a disaster full of low interest loans and you either have to go out of business or make very high risk loans to recoup your massive losses. And this is what happened to many savings and loan companies that lead directly to the savings and loan disaster of the late 80’s and early 90’s. It was bad government fiscal and monetary policy leading to the destruction of hundreds of lending institutions and the loss of thousands of jobs. The government created the Resolution Trust Fund to clean up the mess it had created.

Then after the S&L mess was cleaned up we got the Community Reinvestment Act, Sarbanes-Oxley, Freddie Mae, Fannie Mac and political backstabbing. Banks were forced to make bad loans by the government to unworthy borrowers, Fannie and Freddie buy and sell toxic assets throughout the banking and financial system, AIG and other politically connected firms buy the toxic assets by the billions for political favors from Washington.

Bribes, payoffs, bonuses of every kind imaginable were made and the system crashed. Insiders on Wall Street demanded payback for the bogus paper coming out of Fannie and Freddie and then came the bail outs. Fraud and chaos once again perpetrated by the politicians in Washington. These robbers just cannot resist the temptation to screw with the banking system of America with their insane schemes. It’s like the crooks and mafia joined forces with the police and are ransacking every bank they can get to.

And now the final blow to bankers’ confidence. The Federal Reserve assisted by Congress pumps up the monetary base from $800 billion to $1,800 billion. Bankers being bankers are not the stupid twits all the Keynesians in congress think they are. They can read the Federal Reserve data. They can do the math. They are bankers. They passed business calculus and accounting in college unlike our idiots in Washington with their political science degrees of useless information. Would any sane banker make a loan at 5% if the inflation rate is going to be 15% in a couple of years? Gee let me think on that one Mr. Frank and Mr. Dodd. It’s really quite simple to clear thinking bankers and anyone else paying attention. Only blundering politicians and Keynesian economists who think they can pull a fast one over the dumb business bumpkins are fooled by this buffoonery.

So what is the real deal? Economics is part science and part psychological. Having a communist educated idiot in the White House and a bunch of thieves in congress is not the way to inspire confidence. What would I do?
Cut federal spending. The last thing the economy needs is more idiots spending taxpayer’s money. Privatize social security, eliminate all aid to seniors and cut them a check every month and let them deal with it. Billions and billions would be saved in useless bureaucracies and more importantly the money would go to the people. Get rid of the departments of education and housing. Complete and utter waste of money if there ever was one. All the money in the world isn’t going to make a dumb kid smart.

Take away the power of the Federal Reserve to set any kind of interest rate. Batting 500 in baseball is good but not when it comes to banking. Leave the banks alone to charge what they want to for interest rates. As a safeguard pass an act similar to Glass-Segal limiting banks to no more than 5% market share in the United States. Not needed but it will make the monopoly conspiracy theory people happy. It’s past time to strip the Federal Reserve of its power over interest rates.
Cut the corporate and capital gains taxes to 25% and 10%. Sending a signal that comrade Obama is not going to pull a Chairman Mao would be a nice gesture to the folks who actually work for a living.

Better yet get a flat income tax and get rid of all other federal taxes including tariffs, corporate and capital gains. Do that and the boom will last a decade or more. Everyone who wants a job will have one. Private markets and employers actually work for a living. Government is nothing more than a thief or at best a referee.

And that is the fundamental differences in economist. The demand side Keynesians believe they are superior and resort to government power and money to bully people and businesses around. Their policies lead to disaster time and time again. Fascist, socialist and communist are drawn to the economics of Carl Marx and John Maynard Keynes.
The supply side Milton Freidman types believe in free markets and little government interference. Adam Smith in his book Wealth of Nations back in 1776 pretty much captured the magic of free enterprise 223 years ago. Nothing really has changed much. Nations that pursue free economic systems prosper and those that don’t get poor. It’s not complex.
People claim Wall Street greed brought down the house of cards. Nothing could be further from the truth. Washington’s constant meddling in the banking system decade after decade brought it all crashing down. Why the banks? Well because as Willie Sutton said “that’s where the money is.”

And what is in it for politicians in the long run to destroy the economic system of its country? Besides the obvious political power and pay offs where will all this lead? Inflation will destroy elderly independence and wipe out the middle and upper middle classes. Obama wants a classless society. Inflation is the quickest way to get there.
Socialized medicine will lead to rationing. Who will control the rationing? Government. Favored political groups like minorities and gays will get preferential treatment as they do now with so many government programs. The elderly reduced to poverty by inflation will see the most severe rationing. No money no power. Dictatorship. Just as Roosevelt and Keynes enjoyed during the height of WWII.

And the ironic thing is the people will praise Obama just like they did Roosevelt when it’s all over. I guess it would be similar to John McCain praising his torturers for quitting the torture. It sure does feel good when they quit breaking your arms doesn’t it John?

And there you have it Mr. Beck and Raiford. I strongly urge you to read up on libertarian principals and economics. Freidman, Smith, CATO, Heritage and the Libertarian Party are and always will be sources of inspiration. Tomas Payne in his Common Sense pamphlets need to be reprinted and distributed to all freedom loving Americans.

The world is a different place than it was in 1929. Information passes quickly to the masses. If I and millions can see for ourselves what is happening to the monetary base there is hope. We can remove the tyrants from power. As Mr. Beck states this isn’t a Republican or Democratic thing. Both political parties are moving in the same direction, total power. They are fighting over the spoils of power not differing principals. Both parties need to be removed from power and social engineering needs to be put at the state and local level where it belongs.

If Mr. Beck or Raiford read this insipid little blog I hope it helps. Don’t Tread on Me.

Alan Greenspan was from 1987 to 2006 the Chairman of the Federal Reserve of the United States. Basically he set Federal Reserve interest rates, performed oversight on the Federal Open Market committee (FOMC) and set reserve requirements for banks. The first function grabs all the headlines in the press. And deservedly so since this operation affects home loans, credit card rates and what banks can borrow from other banks. But it was the second function that created as much of the financial mess as the first one. But let’s start off with the first function specifically the federal funds (FF) rate.

Alan Greenspan did an incredible job for many years. Many economists were in awe of his ability to anticipate 3 months to a year down the road what the economy would be doing. This is referred to as “lag” effect on the economy. Simply put what Mr. Greenspan did in March would not have an effect for months. It takes a real master and a little luck to get monetary policy right looking so far in the future but give Mr. Greenspan credit. He did it for years under Reagan, Bush I and Clinton.

In 1987 when Black Monday occurred and the stock market crashed 22% (the equivalent of a 3,000 point drop in the 2008 market) Mr. Greenspan was masterful in restoring confidence in markets. The Federal Reserve pumped money into the markets and restored confidence. By the end of the year the stock market was in the black by going from 1.897 in January to 1,939 in December. A textbook example of how to handle a crash. Alan Greenspan’s reputation as the master of the Federal Reserve was born.

So what happened under Bush II? A good insight comes from following Mr. Greenspan’s corrections of the FF rate.

In 1987 the FF rate was 6% to 7.3%. Played like a master through the crash. 1989 as the Savings and Loan debacle was coming unhinged Greenspan raised the rate to 9.8%. A master stroke that caused a lot of silly loans that would have been made to become expensive even to the most blinded speculators. Now keep in mind the Savings and Loan disaster didn’t play itself out fully until 1990-91. Mr. Greenspan was ahead of the curve, saw what was coming and reacted properly. He made money more expensive for speculators saving the America public billions of dollars in bail out money. A masterful job of running the Federal Reserve.

As Mr. Greenspan saw the negative impact of the Savings and Loan disaster on the economy and the slowdown in economic activity he dropped the FF rate to 4.49%. Once again brilliant use of monetary policy. Everyone with inside business knowledge griped here and there but there was no disputing Mr. Greenspan was keenly aware of what was going on in the economy and was moving monetary policy in the right direction.

In the early 90’s as the economy tanked and Clinton came to power and raised taxes. The FF rate was lowered to 2.91%. As the 90’s went on Clinton cut capital gains taxes and signed the NAFTA free trade agreement with Canada and Mexico the economy began to heat up again. The FF rate climbed to 4.5% to 5.5%. Steady and calm as it should be for a steady and calm economic growth period. Well done, we all enjoyed the 90’s.

As the 90’s closed and the Internet stock exploded and went crazy huge amounts of wealth were being created. Mr. Greenspan gave his famous speech in 1996 about the stock market and irrational exuberance.

Mr. Greenspan 12-05-1996 “Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?”

Clearly Mr. Greenspan was way ahead of the curve since the National Association of Securities Dealers Automated Quotations (NASDAQ) didn’t crash until April 2000. And as this new wealth flooded Americas markets creating the specter of overpriced assets and inflation what did Mr. Greenspan do? Raised the FF rate to 6.85% putting a damper on inflation. Brilliant once again.

So what happened under Bush II? As money came into Fannie Mae and Freddie Mac flooding the home mortgage markets Mr. Greenspan didn’t notice? No! Mr. Greenspan did notice. He is recorded several times warning congress that more oversight and tighter financial restrictions need to be placed on Fannie Mae and Freddie Mac. Every chance he got from 2003 he mentioned the for coming crisis to congress until he retired in 2006. He was not ignorant. He just failed to act.

Why? Only Mr. Greenspan knows. What we do know is by 2002 the FF rate was 1.23%. Justifiable since the economy was recovering from 9-11 and a recession. As the sub prime loans began to dominate the markets starting in 2003 driving up real estate cost faster than inflation what happened? Mr. Greenspan LOWERED the rate to .97%. The exact opposite of his earlier actions under similar circumstances. The FF rate stayed at 1% through much of 2004 as foreign funds flooded US market in search of stable sure returns and sheer speculation. In essence Mr. Greenspan opened the floodgates of plentiful cheap money. Why?

Was he a saboteur? Did he want democrats to gain power? A financial collapse so well timed for the 2008 election certainly would not be beyond the capabilities of Mr. Greenspan and others with access to trillions in funds. We will never know the story for years but what is certain is Mr. Greenspan had a history of doing the right thing and he went against everything he had accomplished in the past to facilitate the destruction of the economy.

Eventually the FF rate was raised to 5.27% in 2007 as the housing markets were crashing all around everyone. The opposite of what should have happened. This intentional or unintentional destruction of markets by the Federal Reserve and it’s manipulation of interest rates is a text book example of why many economist think this power should be taken away from the Federal Reserve. Many economist feel interest rates should be set by market forces alone. Currently the FF rate is 0.13%. Yes 0.13%. The Federal Reserve is scrambling to restore credibility and facilitate money growth. Similar to closing the barn door after the horses have all escaped.

The FOMC actions are more complex but basically Mr. Greenspan was increasing money stock (MZM) during this period of 2003 to 2006. This while foreign investment was flooding our markets. Mr. Greenspan should have been stabilizing or even shrinking the money sock by selling treasury bonds and taking the money off the market and into the treasury. Coupled with raising interest rates and the housing bubble would have at the very least been mitigated if not eradicated.

Now the Federal Reserve is increasing stocks of money faster than ever. What is the next housing bubble? Most likely our currency. Our monetary base has gone up from $824 billion to $1,435 billion in 2008! Normally this change is from 0% to at the most 15% from year to year. This year it has grown an astonishing 80%! We are in very serious times.

If the congress fails to cut taxes or better yet scrap the current tax code and adopt the fair tax we will have a dollar collapse similar to third world countries like Argentina, Venezuela and the former USSR. Congress needs to cut taxes now; Congress needs to take away the power of the Federal Reserve to set interest rates. The Federal Reserve needs to quit increasing the money supply. Congress needs to quit baling out everyone. But none of this will happen. When it all collapses we will once again need to rely on each other to get through this. As we have for centuries.

History repeats itself. I wrote about him in my first post on this web site. And here is more evidence of Keynesian economics and the democrats seizing power for the foreseeable future. Another example of the people having their trust betrayed by selfish and political motives. Mr. Greenspan will go down as one of the worst Federal Charimans along with Eugene I. Meyer (September 16, 1930 – May 10, 1933), Eugene R. Black (May 19, 1933 – August 15, 1934), Marriner S. Eccles¹ (November 15, 1934 – February 3, 1948).