Thursday, September 20, 2007

Opinion: Fed Rate Cuts

I've been reading a lot about the Federal Reserve so I figure it's time for me to put in my .02 in the debate about the recent Fed interest rates drop. Therefore, there's no structure to my thoughts so I may ramble a little here.

Inflation has being going on for a long long time. Almost 100 years now since the Federal Reserve was established by congress in 1913 (see Wikipedia for a full history of the Federal Reserve I also recommend the book The Creature from Jekyll Island: A Second Look at the Federal Reserve). During this time you can actually see how the US debt has grown to a catastrophic level of $9,000,000,000,000 (link). You can also see how much your money is actually worth in value of 1800s money (link). It's really not much. I've seen that the value of the dollar from before the Fed is about $0.04 from what it was. Thank you Mr. Federal Reserve! Don't forget the $53,000,000,000,000 in entitlements the government gets to start paying to the baby boomers on January 1st 2008 (link).

Some say that the inflation by the Fed is a hidden tax. I would agree with this. That's why I get my 3% raise every year from my company to keep up with the cost of living. My savings account makes 4.25% which isn't enough to retire on for sure and to put my money in the stock market and invest in the dollar would be just crazy! Especially now with the Fed cutting rates a half a percentage point! (link)

It's crazy! What are they thinking over there in their private meetings? "Hey lets bail out the market and all the people that made bad decisions!" Whatever happened to responsibility? The Fed, from my point of view, essentially said to the middle class and the poor, "Hey we don't give a sh*t about you guys. All we care about is the market and making sure that all these poor decisions to give money to the banks at a low rate (thanks Mr. Greenspan) just to turn around and give it to people who aren't responsible enough to know they can't afford a home. But hey we know it's a huge risk for inflation and puts the dollar in jeopardy of falling world wide. However, you the 'middle class' we don't care about because we just want to make sure all these people who made stupid decisions in the first place get bailed out!" Will you find this being reported on any MSM web site anywhere? Maybe it's out there somewhere but I can't seem to find it. Although watching CNBC yesterday there was talk about "concerns" with inflation and the strength of the dollar due to the Fed cut. I did find this one opinion article that is informative (link).

I tell you it's really infuriates me! Here goes the Fed pissing off countries like China that hold $1.3 Trillion (yes that's Trillion) worth of our dollar and now due to their decision to cut rates and therefore put a ton more money into circulation is totally devaluing their investment (not to mention Americans as well) (link). They are also incentivising us to spend more and more! (link) While the interest rate drop makes saving money not nearly as attractive.

We NEED Ron Paul more than ever! With Hillary touting her new health care plan at a price tag of $110 billion a year and her saying that she would undo Bushes tax cuts on the wealthy to pay for it all (link). Something tells me that if the dollar falls and China decides to unload even part of it's $1.3 Trillion in US dollar holdings Mrs. Clinton is going to have to either get the Fed to print more money out of thin air and pay interest on that money or raise taxes even more! Therefore, this wonderful 3% raise I get every year isn't going to pay the bills. Inflation is the hidden tax and I'm so afraid it's coming soon thanks to the stupidity of the Fed. And these socialist democrats are going to tax me to death and the other republicans just want to spend spend spend to not only remove my rights but to devalue the money I earn every day.

So I say let these banks who lent money to people who couldn't afford it and let the people who knew better than take money they wouldn't be able to pay back rot. I was responsible enough to know better so why should I have to pay for their stupidity? Thanks Mr. Fed I surely appreciate how you are looking out for the middle class and the poor.

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