Eurotrader

Cutting Rates Further Will Only Lead to Disaster

Exellent article... and I totally agree with the opinion as to what got the US into the financial problems in the first place. The only question that begs is what the political and financial establishment will do to keep the window dressing up as long as possible. I am certain that Ben Bernanke is under huge political and Wall Street pressure, just witness CNBC's constant mantra for another "shock and awe campaign of 50 bps..."

The problems of the rate cut is not only summed up in the further buying-power degradation of the US-Dollar and further sharp price advances in commodities, but the fallacy that the very people who have done the macro-economically right thing, US savers, are getting the shaft so that the hypsters of real estate and the Wall Street credit bubble interests can rake in their short-term cash !!! The long-term consequences of the credit bubble and its debilitating effect on investment in the US (by devalueing national savings further) will be felt across the US for the next years.

Access to more and more foreign capital is now the equivalent of the modern financier's crack cocaine. However, Wall Street - the main ticket sellers to the various financial get-rich quick schemes that get perpetrated on the general public and upon failure mopped up by the Federal Reserve or the US tax payer (largely unbeknownst to him or her) - is no longer interested in what is best for the US national interest, as the cry rings out - "Go Global"!!! The economic interests of the citizens of this proud country are going down the tubes along with their home prices and their ability to recoverr from their credit crush, putting seriously at risk their stake in the economic dream that once was creation of capital, rather than creation of debt driven by consumptive madness.