Vox Day predicts the Federal Reserve will die one way or another:
Sham and deception has become the order of the day. As congressional mandarins boldly rush to the barricades of Wall Street to defend the banks again, the administration careens wildly from one absurd public statement to the next; no sooner had it claimed to have created 640,329 jobs by spending $159 billion in stimulus money than it was asserting it had only spent $92,000 per job, not the $250,000 simple division would indicate. The federal government has reached a truly bizarre state of consciousness when it is attacking basic mathematics as "calculator abuse." And this Associated Press account of the administration's defense of nonsense serves as an amusingly apt metaphor for the way in which both the legislative and executive branches are desperately attempting to preserve the present financial system.
"[The White House] aggressively defended an earlier, faulty count that overstated by thousands the jobs created or saved so far."
The strategy of the political and monetary authorities is very clear. Buy time. Extend, pretend and defend. Exert the power of positive thinking, engage in happy talk and attempt to lift the public's animal spirits until the prophecy of economic recovery becomes self-fulfilling and rising asset prices return bankrupt balance sheets to solvency. It is not a good strategy. It will not be a successful strategy. But it is at least a coherent one. The problem is that they are fast running out of time. They simply refuse to understand that the real danger to the Federal Reserve system is not a political one due to the understandable fury of the American people or even an accounting one stemming from uneviscerated audit legislation, it is an economic one based on the simple fact that a fundamentally flawed system is once again approaching its inescapable reckoning.
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