US Financial Fear Tactics

Not one of my usual topics - but I have been watching the US financial world with some concern and thought I'd put out some information, thoughts, and questions - becaue my concern is a little different than those watching home prices or stock values fall.  My concern is about the suspicious solutions.

1.  The Federal Reserve - the company that decides interest rates and prints money is not a part of the US Government.  It is an independent company.  Companies are in business to make money.  Interesting fact to note.  The idea for a Federal Reserve comes from old England where their debt to the Federal Reserve was costing them so much - they had to keep increasing taxes.  It is speculated that this is why England was taxing the colonies and what brought about the Revolutionary war.  Why would congress agree to give up so much power to a profit oriented entity?  The fact is, the establishment of an independent company to  run "money" was passed during a holiday when there were only 3 senators present to approve it.  So - basically - the Federal Reserve only has America's interest at heart enough to keep making money of the country.  Yes, the President does choose the chairperson for the organization.  This is part of the guise to keep it seeming like it is a government agency - sort of like calling it the "Federal Reserve" when it is neighter a federal entity nor a guaranteed reserve.  A third party company, however, can manipulate the government by doing things like lowering the value of the dollar.  This is an entity which seems to need some closer watching if it is to exist.  This is more likely to happen when the government is looking to satisfy certain interest groups - it puts the dollar into a weak  hand.

2.  Interesting quote on yahoo news:

The administration is asking Congress for far-reaching new powers to take over troubled mortgages from banks and other companies, including purchasing sour mortgage-backed securities. Administration officials and congressional leaders are to work out details over the weekend. What do you think those "far-reaching new powers" will be?  Do you think there may be some new laws implemented which might not even be necessary sort of like the "Patriot Act?"  Will the government be using this time of fear to implement more controls and pay off last minute favors to helpful associates?  Will they call these new powers the "No taxpayer left behind?"  or "The Pot of Gold Policy?"

3.  So why now?  Why is this all of a sudden an issue?  Everything that has been going on to lead up to this has been going on for a long time.  Why was there no awareness of it while certain people in priveledged places were completely bilking people out of their money with a long term perspective.  Were we too distracted fighting a war to notice?  And why is it that just a few months left before the current government will likely (and hopefully) change over in a big way is it that now - suddenly - it's a good idea to close up all these finanical loopholes that have been exploited?  The timing is very curious.  Could there be some large sums of money that might be able to be accessed if there is enough commotion and fear?  Could there be some sort of Depresseion-era fund that could be brought into play?   Oh - interesting, yes, there is. 

If there is enough fear and craziness, will the Federal Reserve end up encouraging more lending?  Oh - yes, in fact, they are.  Remember, that's how they make their money.  It's easy to lend money when you are the company that prints the money.

What I hope is that there are at least a few senators and congresspeople in Washington who will keep a close eye on these new policies being put into place and won't let the same kind of threat of betrayal tactics that have been used for the last 8 years continue to be used here.  "What?  Are you Anti-american?  We need these rights to control you assets in order to save America!!!  What are you a terrorist?  You hate America?"  

Representative Brad Sherman, who I don't know much about other than he's a Californian Representative is quoted in the article:"You give them good cash; they give you the worst of the worst," Sherman said of the plan, which he complained that Bush and his economic advisers were trying to panic lawmakers into rubber-stamping.

Paulson rejected Democrats' calls to include tighter regulations, corporate reforms or limits on executive compensation as part of the measure, Sherman said. "He's doing his best to paint a picture of the sky falling, and then he says, because the sky's falling, you have to do it my way."So - we know now there are oppoenents to all this last minute rush of money policy shifting.  Will we hear from them on major news outlets? 

Just lots and lots of curious happenings rounding out eight curious and sad governmental years.