http://westernstandard.blogs.com/…

The US Federal Reserve and other central banks have been in the headlines recently.  First there were the various expansions of power that allowed the Fed a greater role in the economy and then there was yesterday’s coordinated interest rate cut by 6 of the world’s central banks, including the Fed and the Bank of Canada. A month ago few Canadians knew who Federal Reserve chairman Ben Bernanke was, now they’ve seen him testifying before Congress clamoring for a bailout, but they still may be unsure exactly what he does. Here Australia’s answer to Jon Stewart, Shaun Micallef interviewing the Reserve Bank of Australia’s Tony Froth (remember then Fed Chair Alan Greenspan’s July 2005 comment that “the apparent froth in the housing markets appears to have interacted with evolving practices in mortgage markets”) trying to get to the bottom of it:

http://money.cnn.com/…

The Federal Reserve, working in coordination with other central banks worldwide, enacted an emergency interest rate cut on Wednesday.

The Fed lowered its fed funds rate by half of a percentage point to 1.5%. This rate is the central bank’s key tool to affect the economy. Lowering the rate pumps money into the economy by reducing the borrowing cost on a broad range of loans, including credit cards, home equity lines and many business loans.

The moves were made in coordination with other central banks around the world including the European Central Bank and Bank of England.

The Bank of Canada, the Bank of England, the European Central Bank, Sveriges Riksbank, the Swiss National Bank, and the Bank of China all all in this too with the Bank of Japan providing moral support. CNN happened to be interview the president of the Council on Foreign Relations, a globalist / neo-merchantilist organization sponsored by Wall Street, when the story broke. He was saying how great it was that all the banks worked together to lower rates. When the topic turned to the presidential debate from last night and Barack Obama’s outright claim of unilateral attack in Pakistan to get Osama bin Laden he was again singing praise.

The Fed keeps pushing and pushing. This inflation is going to catch up with us sooner or later and we will be in a world of hurt.

Here is the statement by the Federal Reserve regarding the cut.

The discount rate was dropped to 1.75%