TruthSavvy.

As long as the value of the yuan in international trade is not an issue addressable by the international community, China’s policy of growing its money supply (M1 & M2 equivalents) at over 20% annually is the same thing as China declaring war on the world. As thinking people have come to understand, a large country’s monetary policies can impact the long-term economic sovereignty of other countries in the global trade era as effectively as military policies.

The market’s recent plunge to new closing lows complicates the recovery picture for many market bulls, including people who believe the regulatory reforms underway will eventually cure whatever ails us. Recent market action — including the May 6 ‘Flash-Crash’ — should be unsettling to individuals who think free market mechanisms are all we need.

President Obama’s nomination of Elena Kagan to the U.S. Supreme Court is, essentially, the same type of governing act as the EU decision to bail out European banks vulnerable to the Greek crisis. In both instances political leadership serves the interests of financial elites — plutocracy advancing while veiled by supposedly democratic institutions. In both cases the power of government grows as it defends the critical interests of financial policy overlords.

It is time to dismantle the central bank conspiracy. In countering the cabal, Farrell urges the reading of William Greider’s July 15 essay,“Dismantling the Temple”. Greider provides an exposition of the Fed’s calamitous financial biases and regulatory deficiencies. Furthermore, he draws attention to the bipartisan idea that the U.S.

Make no mistake, Fed Chair Ben Bernanke believes the Federal Reserve stands a fighting chance of re-inflating many segments of the economy and most categories of paper asset prices. Shrewdly, he is less confident that the Fed’s operations will result in a satisfactory recovery of America’s lost jobs. Fed Chair Bernanke can speak of the ongoing financial crisis as the worst since the Great Depression because his rescue of the banking industry will leave many Americans in the lurch.

Mass media may have been the weakest link in the American political system until the financial crisis of 2008. Personal observations support this conclusion as well as assessments of discerning scholars like Doris A. Graber (see “Mass Media & American Politics,” 7th edition, 2006). However, the emerging media situation is more complex, with growing evidence that heroic visionaries are writing to greater effect than forked tongue villains or hopelessly compromised media celebrities.

The investing public needs to make sense of the fast changes underway in the U.S. economy. One useful means of untangling current events is to compare the Russian experience with our unfolding situation. The comparison illustrates the likely fate of both countries.

There is a lot we don't know yet about the FED's 79.9% stake in AIG. But we do know that the FED's rescue of AIG has enormous implications. Allegedly, AIG wrote nearly a half trillion dollars of credit derivative insurance on the viability of businesses throughout the world. We need to understand how far this ownership goes beyond symbolism and bridge financing. The U.S. taxpayer may be assuming a big chunk of liability for world commerce, and in the face of a credit contraction that will bring down global businesses.

The key statement in Greg Robb’s insightful report is this: “So the tricky question is – if not the FED to the rescue, then who?” That question is more important than perhaps 98% of Americans realize. Will it be Robin Hood’s faithful company? Or the Wall Street Hood!