The Fed will ruin us...

Last week, Jim Cramer blew up on TV at the fed. Even though Cramer recognizes something needs to be done, Cramer is stuck in fucking la-la land like the rest of the "everything is fine" financial news analysts in the country. There is a reason the fed has kept their overnight lending rate at 5.25% for so long:

• If they lower rates, banks of course lower their rates, and naturally give out more loans. The more fiat money they give out, the more inflated the money supply becomes, raising prices.
  
• If they raise rates, fewer people borrow money and the economy slows
  

They are walking a fine line of destruction of the economy vs. the quicker destruction of the dollar. This is how they created the housing bubble, and as Cramer says, people are going to loose their homes when they can't make the payments. Articles like this highlight what the Federal Reserve policy at a time like this is - inflate the money supply. WHAT THE FUCK??? "The Fed pushed $38 billion in temporary reserves into the system Friday, on top of a similar move the day before." Who the fuck at this AP article? You must be kidding me. "Temporary reserves"? As someone in Freedom to Fascism pointed out, the Federal Reserve is quite a misleading name. It's not federal (it's a private bank that "loans" our money (Federal Reserve Notes) to us) and they have few reserves (not much gold is left backing the "currency"). What they did is pump like $60 billion into the economy in two days. Inflation is already at 14ish percent. Holy Christ.

Record high milk prices? It's not just the fucking asians drinking our milk -- it's inflation. Our inflation and debt are actually getting so bad, China's central bank is threatening to sell off their enormous amounts of dollar reserves. God forbid they stop loaning us 2 billion a day to run our government!!

There is an insidious institution at the heart of this. Fractional reserve banking. If you don't have hard assets/commodities (like gold and silver) baking your currency, there is no protection against inflation (and at some point, hyper-inflation and currency collapse like in germany in the 20's). The answer is sound money -- getting rid of the Federal Reserve and restoring the power to coin money to congress, or at least taking the monopoly power from the federal reserver and letting private money systems compete. The ONLY viable politician right now who understands this and WILL change it is Republican presidential candidate Ron Paul. Check him out.