Elmer Fed hunting taxpayers

The Egghead Rides Again

Visiting USA from Turks and Caicos over the weekend I was playing golf and having a fresca with my friend Judge Smails. His distaste for the current state of affairs was remarkable. Judge Smails: “it’s very clear that they (FED/Wall St/Washington) are not going to change course. They keep pressing the same tired button -- more debt -- more debt. Eventually, and I think not too far off, we will get a disorderly correction that will make the great depression look like brunch at the country club. They simply cannot fathom that the answer isn't more debt, but less. They are going to extend unemployment benefits, extend the housing subsidy, etc -- punish the prudent, reward the reckless. Over and over, until it breaks.”

I think Judge Smails’ displeasure stemmed from an unfair system that gave up on the free market as there was no legal ‘due process’ in the system. For more in depth study of the illegal actions of the FED:

http://works.bepress.com/chad_emerson/5/

All the money printing and debt will force the US$ down and in the long run (indeterminable) there will be inflation. This is a fact as history has proven and they aren’t so smart that they will make it different. Pancke has no magic simply because he wrote a paper on the Great Depression in college. The endless supply of ink for the dollars being printed for the bailouts will ultimately backfire and increase taxes. Does anyone really want to pay more taxes so a wall St. Fat cat gets a bigger bonus? Bottom line is they (FED/Wall St/Washington) want people to be forced into the stock market as you can’t make anything in an interest bearing cash account or a secure CD. Force people into the stock market means more commissions and management fees for Wall St. Wall St. is paid in commissions and management fees and the more money sloshing around the stock market the more Wall St. banks take a cut of it. This is about bailing out Wall St. banks. Wall St. is paid on fees and commissions remember this. They want the market volatile so there’s more trading (commissions) and they want all your money in the market and nowhere else (fees collected for managing your money regardless of performance). The more money they have under management the more they are paid.

D.C. has now forever gotten its hands into Wall St. and the stock market. Pre 1997 (besides the FED) D.C. in general had limited influence in the markets as compared to now. Now Washington D.C. influence on the markets is astoundingly large and this gives more power to politicians, which is what politicians live for. Recall in 1998 when the entire S+P 500 ticked on Barney Frank’s words. Imagine; the entire market ticked on the words of a guy named Barney? But it did. 1998 any idiot in congress could come on TV and the market would tick according to what he would say (this literally occurred). Now the precedent is set. D.C. and Wall Street are forever intertwined. Wall Street will always seek D.C. for bailouts (and there will be more) and D.C. will look to Wall St. for payouts and handouts in return for the bailouts. Elmer Fed is robbing Peter (the U.S. Taxpayer) to pay Paul (Wall St. Banks). Pandora’s box is open and it can’t ever be closed.