Tuesday, April 01, 2008

A failure of US centralized banking?

Posted by The Dean of Cincinnati

Guest post by Scott Ryan

I am not a conspiracy buff and I still think that the U.S. markets are the strongest (because they are the freest markets) and I truly believe that the powers that be will prevent a crash at the taxpayer’s expense (worldwide taxpayer), but the question becomes, how much can the average taxpayer afford?

The Fed created this mess, and they may in fact fail trying to get us out of this mess.  In the end who pays?  You get one guess.

While still highly unlikely, it has now crept into the world consciousness that we may be, possibly, on the brink of the third ever failure of the U.S. centralized banking system.

Read this.

This will take months if in fact the efforts of the Fed and the President’s Working Group fail, but I wanted to give you a heads up.

My prediction …and I say this with only about a 58% probability and trending lower:  The world economy is strong enough to absorb the losses, but only through a massive expansion of the world monetary supply.  The result will be inflation, probably exceeding the rate we saw in the 70s.  The indirect impact that will have severe long-term consequences will be increased regulation.  (It’s like giving an iron deficient woman a good bloodletting)

Here’s the kicker.  Even if they fail in creating an artificial bottom to the market and the recession moves into a depression, guess what the indirect impact will be that will have severe long-term consequences?

• Share This Article!
Listen to this article

Socializer!

Username

Password

Auto-login on future visits

Show my name in the online users list

Forgot your password?

Register

Anonymous comments are allowed, but you can create an account above to stamp your name and to avoid typing the anti-spam code.

If you are not familiar with our rules for leaving comments, click here! The Cincinnati Beacon is not responsible for the contents of any comments. Comments do not represent the views of the moderators of The Cincinnati Beacon.

Toronto Lofts says:
05 Jun 2008  at  08:55 pm | #

Fed system needs a re-evaluation. Too many flaws in the current system.

Name:

Email:

Location:

URL:

Smileys

<b>

<i>

<u>

quote

code

@

<a>

Close Tags

Remember my personal information

Notify me of follow-up comments?

Submit the word you see below: