Hank Paulson’s wildly moronic plan to deal with the current financial crisis via massively expanded Federal Reserve System (privately owned) oversight of the total financial sphere of the economy smacks 100% of “not-goodness”.

There is something inherently wrong with the following chain of activity:

1. Federal Reserve System helps foment seriously unstable financial circumstances (credit bubble)

2. Federal Reserve induced credit bubble reaches its logical conclusion as overly-leveraged markets fall due to massive risk (credit bust)

3. The Treasury Secretary advises an extreme expansion in Federal Reserve powers of oversight, regulation and control ???

Something about this is very fishy. Either these folks have nasty ulterior motives or they are just really stupid. Either way, there is no real justification for something like this taking place.

As Thomas Jefferson so aptly noted:

“If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

Also, a quality op-ed by Peter Schiff.

Plus, the Leninist Ben Bernanke?:

Filed under: Politics, Social Mood, Economics