The New Deal-Makers

Does the Bear Stearns deal remind of black market deals done in the dark of the Night? The Louisiana Purchase by Thomas Jefferson came immediately to mind as I read this article this morning. The significance can be considered in the same light: secret negotiations in a closed service auction with no Public notification, restricted access to both Bidding and Commentary, Sale far below par without Investor input, with a final Sale price below acceptable Market valuation. This was an action designed to save Bear Stearns from bankruptcy, could it not be worse than the bankruptcy itself to the financial markets? The activity of the Fed in the Transaction remains partially unexposed, itself somewhat a Violation of the rules of the Road.

A Correspondent and old Antagonist of myself, Robert M. Liu, sent me this Public Letter over the Weekend:

Please join me in calling for the resignation of Fed chairman Bernanke before it's too late or before your hard-earned savings become worthless printed paper. The single most serious mistake with the most disastrous consequences made by the Bush Administration is not the Iraq War as the anti-war political left claims (which in my opinion is the Administration's greatest achievement with far-reaching historic significance that will be recognized by future generations), but the appointment of Bernanke -- an economic quack who pretends that a 4.8% unemployment rate is still above America's natural jobless rate.

There is clearly a wide inflationary gap in the U.S. economy because of an oversupply of printed paper currency. If the Fed refuses to stop its printing machines, the price of gold could zoom way beyond 1000 dollars per ounce. Who would trust the U.S. government when it comes to money matters? And if the U.S. government can't be trusted on money matters, why should anyone trust it on other global issues? If the U.S. government can't protect the reserve currency status of the U.S. dollar, why should we trust it on security issues when American citizens' financial security is under attack by none other than the Federal Reserve?

The Bush Administration came into office with the promise of lower taxes. But the kind of runaway inflation that is currently hitting American pocketbooks is equivalent to double-digit tax increases that exceed whatever the Democratic Congress would ever dare to propose. I look forward to a John McCain Administration coming to office to fix America's fiscal house and suicidal monetary madness! Ladies and Gentlemen, please join me in calling for Bernanke's resignation. Bernanke, resign! Bernanke, resign! Bernanke, resign!

I cannot agree with the vehemence of the Letter, but can understand the Sentiment behind the rhetoric. The trouble resides in the fact that the Chair of the Federal Reserve is not truly the Issue. Whoever sat in the Chairmanship would have been chosen by the Wall Street leadership who picked Bernanke, the result of the Bush surrender to the demands financial leadership of the Country to attain political support. This Process of allowing the Regulated to chose their own Regulators has brought the financial crisis, and a return to Recession. Beware of the Rich choosing their own path to greater Wealth, a sure guarantee of Monopoly, and loss to the Individuals excluded from the Process.

(I will now publicly apologize to Robert for publication of his Letter without his permission, and using my own Quotation marks in the doing of such; but it is not the greatest offense We have committed against each other) lgl