Powder Blue Report

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Friday, August 17, 2007

Federal Reserve Caves On Fighting Inflation

Well with the world financial markets melting down this week, it was only a matter of time until the Fed caved on their stated policy of fighting inflation. They cut the discount rate today by a full 50 basis points. They have done a 180 on this policy and now they are going to try and inflate their way out of this crisis. Good luck with that. This is the problem with Central Banks. They are the ones that created this problem by making money so cheap for for so long. Now they are bailing out all their buddies on Wall Street with this rate cut. This is going to end badly down the road. They have postponed the pain that needs to happen. The best thing they could have done is let the markets work. The bad debt needs to be liquidated and the excesses rung out of the market.


  • At 1:47 PM, Blogger Agent Orange said…

    TIMBERRRRRRRRRR !!!!! -- Day #5

    As I predicted nothing happened Allan and money got dropped out of the Federal Reserve chairman Ben Bernanke's helicopter as he promised.

    This will continue until the globalists run by lluminati, Bilderbergers and other secret societies like Skull & Bones will give a OK to global-economy-collapse to starve to death 6 billion people so they can execute their merger.

    However, all that is coming to me via the electromagnetic pulses generated by HAARP
    which are bounced on me from the black helicopters which are constantly following me.



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