This whole system is why there is inflation and people are finding it more and more difficult to pay for even the most basic of the basics.
We need the Christian Commons Project™.
Before the economic woes hit the mainstream news, I wrote that the Federal Reserve would use the opportunity to raise interest rates to strengthen the dollar as a front for throwing more people out of work so those who make fortunes off the sweat of others could hire up more people on the cheap. I also said that the idea would be to cause a huge budget deficit that the greedy ones would say may only be balanced via evil privatization of entitlements (Social Security and Medicare) and slashing those entitlements as well.
The real point is to cut taxes on the super-rich and maintain those lowered rates so the rich can live higher and higher off the hog in relative terms while the planet burns.
Well, the Federal Reserve did it Milton Friedman's way first. They further loosened money. It was good for show (adds to "plausible deniability"). It's not worked of course, so now they'll do the Paul Volker thing and give the common American people a further shock by raising interest rates.
Of course this is all a ruse. The business cycle (boom and bust) is all known in advance by those who set it up so they as insiders can time the movement of their investments to maximize profits.
Just look where Alan Greenspan ended up working: Paulson & Co. He now works for the man, John Paulson, who made the biggest public killing of all by betting (sure thing) his hedge fund on the insider information he had that the dollar would tumble. Was he in any of the junk real-estate securities?
Now, as I've written a couple of times before, why would the guy who knew what was going to happen hire the guy who claims he was caught off guard? It's because Greenspan wasn't caught off guard at all. He knew exactly what he was doing in setting up the boom and bust.
The Associated Press
Published: June 13, 2008
Inflation shot up in May at the fastest pace in six months, pushed higher by soaring costs for gasoline and other types of energy the U.S. labor department reported Friday.
Consumer prices rose by 0.6 percent last month, as gasoline costs surged by 5.7 percent. Food prices, which have also been rising sharply, were up 0.3 percent as the cost of beef and bakery products showed big gains.
Core inflation, which excludes energy and food, edged up a more moderate 0.2 percent in May. But even there, core prices are up 2.3 percent over the past 12 months, above the Federal Reserve's comfort zone.
The Federal Reserve, which from September through April had been aggressively cutting interest rates to fight a mounting economic slowdown, is now indicating that its biggest concern has changed from the threat of a recession to worries that inflation could get out of control.
In a speech Monday, Fed Chairman Ben Bernanke said that the Fed will "strongly resist an erosion of longer-term inflation expectations." Those comments have raised expectations that the Fed's next move later this year will be to start raising interest rates.