Fed Cranks Up The Presses

CNN/Money reports:  

"One day after disappointing Wall Street with a quarter-point rate cut, the Federal Reserve announced a plan to inject billions of dollars into the financial system."

The fact that the Fed is working together with central banks from around the world indicates that the situation is worse than it appears. Unfortunately, inflating the money supply (which caused the mess in the first place) cannot fix the problem. It can only make it worse.

Ron Paul summed it up nicely (via LewRockwell.com blog): 

"Inflationary monetary policies created the problems in the economy we are seeing, and these problems will be made worse, not better, by more inflation. And today's action by the Fed is very bad news for American workers and retirees who are about to get hit with yet another jump in prices.

"Make no mistake, the problems faced by the American people are not caused by unscrupulous mortgage brokers or the rising price of oil. These are symptoms of an economic disease caused by a spendthrift Congress enabled by loose monetary policy. Too many pundits praise the weak dollar as benefiting exporters, but they fail to see the harm done to thrifty, hard-working Americans.

"Rather than continuing to pursue a policy of easy credit and increasing debt, we need to return to a sound monetary system."