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Did the Fed try to wreck the economy?

Posted in Banking News by RateRunner
May 19, 2009 11:55 AM - 11 Comments

"New World Order"

The unidentified creators of “The TRUTH Behind the Total Collapse of the U.S. Economy” think so.

We don’t think anyone can argue that the Federal Reserve helped to inflate the real estate bubble of the early 2000s because former Fed Chairman Alan Greenspan pushed interest so ridiculously low.

But was that a colossal screw up or a calculated plan to create a financial crisis?

These guys think it was a huge conspiracy to cripple the free market system and provide an excuse for the federal government and the world’s biggest banks to seize unprecedented control of the global economy.

Indeed, they think a single global currency and “one world financial system” is the ultimate goal.

As the video puts it: “They engineer the crisis. They create the problem… And then they come in and offer the solution which is giving them unlimited capital, unlimited control, unlimited power over world markets to now create a tripolar global currency regulated and controlled by them.”

That’s what they think leaders from former Vice President Dick Cheney to President Barack Obama are really talking about when they call for a “new world order” to solve the crisis.

A more benign explanation is that those leaders simply want the major industrial nations to work together to prevent a total economic meltdown by saving the international banking industry from collapse and ensuring that the kind of crazy lending that led to this crisis will never happen again.

But maybe we’re missing something. Take a look.

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  1. Richard Barrington said:
    on May 19th at 01:13 pm

    Does anyone seriously think the government could have pulled this off so flawlessly? It’s important to remember that as much as Greenspan liked to take credit, most of what he did during his tenure was to follow the lead of the bond market. In other words, he certainly didn’t put the brakes on the asset bubble, but neither did he single-handedly create the low rate environment.

    Without the benefit of historical perspective, this might seem like a grand conspiracy I suppose, but there have always been cycles of boom and bust that are accompanied by cycles of laxness and tightness in regulation. None of this is entirely new territory.

  2. Morrison Bonpasse said:
    on May 20th at 08:06 am

    There is no conspiracy about moving the world to a Single Global Currency – it’s simply a very, very good idea, and the sooner the better.

    Such a Single Global Currency will provide what the people of the world want – stable money.

    The success of the euro has shown the benefits of monetary union, but the primary problem for the euro and every regional monetary union today is that they must still exist in the multicurrency world where the value of its currency will fluctuate against other currencies.

    If 16 countries can use the same currency, why not the 192 U.N. members? Those 192 countries now use 141 currencies and the number is dropping annually. The euro is definitely a harbinger of the future, and soon all 25 EU members will be part of the EMU, and by then, there will be more EU members to add. Several of the remaining non-euro EU members are now seeking admission as soon as possible. The IMF has even urged several EU members to “euroize” even before completing the standard accession process.

    In addition to eliminating currency fluctuations, the use of a Single Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually, eliminate currency risk, eliminate current account imbalances, eliminate the need for foreign exchange reserves (now totaling more than $6 trillion); and bring other benefits
    worth trillions, such as reducing the impact of global financial turmoil such as we are now experiencing.

    The Single Global Currency Assn. (www.singleglobalcurrency.org) promotes the implementation of a Single Global Currency by 2024, the
    80th anniversary of the 1944 conference. That’s only 15 years away.

    The world is moving toward a Single Global Currency through the creation, expansion and merger of regional monetary unions. Another route is through international monetary conferences proposals and agreements, such as were seen at Bretton Woods. The merger of the eurozone with one or two other currencies is one possible route to a Single Global Currency.

    The next major realignment of the world’s major currencies should be to a common currency managed by a monetary union central bank. When such a currency supports countries with 40-50% of the world’s GDP, that currency will become the defacto Single Global Currency, and the “tipping point” momentum will favor its continued growth, until it supports all the countries of the world.

    The challenge now is to reach that goal deliberately, as soon as possible, with as little cost and as few crises as possible. If the eurozone were to merge with the U.S. dollar of the yen, or if the yen and the U.S. dollar were to form a monetary union, the road to a Single Global Currency would be clear.

    The only remaining questions about implementaiton of a Single Global Currency are: when? and how much cost and turmoil will the world endure before that implementation.
    See the book, “The Single Global Currency – Common Cents for the World.”

    Morrison Bonpasse
    Single Global Currency Assn.
    Newcastle, Maine, United States

  3. Richard said:
    on May 21st at 10:44 am

    I do think that there is some truth to what it said here, but the FED is not the bad guy please. And lowering interest rates did not do that much bad to the U.S. economy. The real problem for me was outsourcing and budget deficit. More bad it did to the chine’s and developing countries’ economies by creating babble there. And I do think a new world system is need, one that does not let chine take control of the world. The current world economic system is not chine prove yet. The FED is here to help the U.S. people. Sometimes all that is done cannot be explain because is not political current but correct, but it has to be done.

  4. Rajeev Singh said:
    on May 24th at 07:20 am

    I do think that lowering interest rates dd contribute in alrge way to the bubble seen in the housing sector . In fact historically when rates are low housing rates go up and such it looks like preconcieved thing. It is in America’s interest to have a unified global economy and dollar as the world’s currency considering the debt it has. If dollar were to fall out of favour it will cripple the US economy and will also affect the economy of the worlds major lenders like China. US is living well beyond its mean by taking dollar debt from other conutries and this way they can continue to do so.

  5. professor said:
    on May 27th at 12:45 am

    I don’t think these people are bright enough to have planned this destruction. BUT I would like to know why Obama has the same crooks
    (geithner/summers) running the show as Bush did with that criminal paulson. Paulson’s only goal was to save goldman and in the end goldman is running this planet. But they were almost destroyed too due to paulson’s incompetene as ceo of GS, Too bad congress, stupidly, gave those crooks 700b. Those investment bankers should be filling pot holes across this country right now instead of planning their next idiotic derivatively based worthless paper.

  6. JOHNS WU said:
    on May 27th at 04:40 pm

    Goldman Sachs + Chase already own America. Now they are looking to control the world.

    And all they do is sit at a computer and move money around…

    What kind of world is this?!?!

  7. Moozer said:
    on May 29th at 08:11 am

    Oil now back to $65 a barrel. Looks like Goldman, and it’s counterparts are back to their old tricks!

    The price would fall immediately to it’s normal level if the government idiots that regulate commodity margin requirements would get their heads out of the sand (or the trough) and dramatically raise the margin.

    The argument that the US markets cannot do that because investors
    would thade through the markets made in other countries is bunk!
    Anyone with enough sense to accumulate capital knows that the US
    markets are the only real safe markets.

  8. Moozer said:
    on May 29th at 08:24 am

    It would seem to me that those that packaged the worthless morgage garbage as bonds, then enticed other countries, pension funds, etc., to buy them as triple A rated securities should be in jail. Especially when they immediately sold them short.
    Those at Moodeys and S&P that rated that garbage AAA should join them in jail!

  9. Rate squirrel said:
    on May 31st at 04:06 pm

    ive seen the shift of american manufactoring to foreign countries and no body seemed to think it important in government. Wanting to boost trade i suppose.
    The most valuable knowledge is the knowledge of the future, certain activities portend certain ends. The People in power right now seem not to have a CLUE as to this extreamly important subject. THey may not be mad or insane but they surely act the part. More honesty about everything and any thing would be a start. ;)

  10. BloggingBanks.com said:
    on June 4th at 09:24 am

    Alan Greenspan helped the internet bubble pop by raising rates in 1999-2000. Then he helped igniting the real estate bubble by cuttin rates between 2001 and 2003. After which it was Bernanke who gets the blame for the popping of the real estate bubble after raising rates..

    I wonder what would be the next bubble from the current low interest rates?

  11. Tired of LIARS & CHEATS said:
    on June 23rd at 04:48 pm

    Article quote: “We don’t think anyone can argue that the Federal Reserve helped to inflate the real estate bubble of the early 2000s because former Fed Chairman Alan Greenspan pushed interest so ridiculously low.”

    Don’t be so quick to excuse Greenspan! He & the Fed did nobody any favors (except themselves, maybe) with all the gyrating rates. They all KNEW da*ned well what would happen when those ARMs (adjustable rate mortgages) came due. They’re supposed to be the “money experts,” and then they claim they didn’t see the MELTDOWN coming?! Yeah, we DO blame Greenspan, the Fed, and a few others…

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