The Fed Has Admitted That It Has Totally Lost Control of the Crisis

In its Aug. 10th meeting, where it escalated the hyperinflationary bailout, the Federal Reserve basically admitted that it has totally lost control of the financial crisis. With Kansas City Fed President Thomas Hoenig dissenting, the Fed vowed at the meeting to continue buying securities — reportedly, U.S. government debt — and reneged on its pledge to reduce it $1.4 trillion securities holdings—much of it mortgage-related toxic waste. The Fed will pour billions (up to $200 billion) of new non-existent money into buying new assets, because there is no recovery. Or, in their language, "the pace of recovery in output and employment has slowed."

Hoenig, who had been the first of the Fed regional presidents to support reinstating Glass Steagall, opposed the Fed's reversal of its stated policy that it would bring down the $1.4 trillion in assets holdings by $200 billion. Another big bailout—with no need to ask the Congress or the American people—and another massive jump in hyperinflation.