Welcome To The 1970s

As you're likely aware, today the Fed cut interest rates and it's discount rate both by 50 Bps. The dollar instantly tanked. Oil shot higher. Gold shot higher.

There was a few weeks where you almost had to give Ben Bernanke the benefit of the doubt. When he first cut the discount rate in response to the credit market turmoil it seemed like a reasonable move. Greenspan would have cut the Fed funds rate. Greenspan was a complete whore. So you figure Bernanke is attempting to act more responsibly. Then he says: "It is not the responsibility of the Federal Reserve--nor would it be appropriate--to protect lenders and investors from the consequences of their financial decisions." Those words actually came out of his lying mouth.

Well, today Bernanke proved that he is the Greenspan incarnate. Ofcourse we've known for a long time that the Fed would panic and slash rates in the face of a slowing economy. But the circumstances at this particular moment in time are especially insidious. Oil is at an all time high! All time high! The dollar is threatening a complete collapse having broken it's last support level. Well guess what, Bernanke just pushed the dollar over the cliff.

Let's put this in context. The Federal Reserve was founded with the primary objective of price stability. Control inflation. That is the mandate. Now we've devolved to the point where the Fed apparently doesn't give a damn about inflation.

You can bet that pushing the dollar over the cliff will have ramifications. To be felt by every single citizen of this country. There is no avoiding this now. You could probably paint the scenario...I guess, in which we impeach Bernanke and start jacking up rates in the face of a slowing economy. That's what it would take and the chances of that are virtually nil. That scenario wouldn't be pretty either but it's a whole lot better than what we're going to get.

Think $5/gal for gasoline. Think about your grocery bill doubling. Think about everything in Wal-Mart going up in price by 30%. That's all in our future. Kiss the middle class goodbye. They're history.

How did this happen? Bernanke wanted to bail out Wall Street. Pure and simple. Bernanke is a tool. A puppet. We just sacrificed the middle class of this country in an attempt to insure Wall Street players get their bonuses. Labor just got screwed again.

This rate cut will not even help the housing mess. Long term interest rates will be going higher not lower. Bernanke just made things worse for housing.

If I had the choice I would move my family out of this country right now. As it stands, that option is not on the table. It will be six years until it is. By then it will be too late and we'll be stuck here. That is my fear and such is my level of disgust that I am deadly serious. I would move-right now!

Folks, I suggest you take actions to protect yourself and your family. Get out of the dollar as much as possible.