Federal Reserve and Monetary Policy: “Please, Do Not Feed The Animals.”

$100.00 oil. YIKES!!!!!
$3.00 per gallon gas. OUCH!!!!
The survey says only a measly 110, 000 new jobs in the month of March, yet the unemployment rate fell to 5.2%.
THE SKY IS FALLING, THE SKY IS FALLING!!!! Fed's Poole screams.

I think the Federal Reserve needs to be more concerned about California's having the most new home buyers with interest rate only and adjustable mortgages than to fan the flames of inflation. The Fed needs to get a grip on reality and start to drain that “Ocean” of dollars on the international markets before an “Orange County” type collapse happens in Californian and in the US. The US housing market and in a specific instance, California's housing market, is an example of the “carry trade”. Carry trade is a financial strategy which takes advantage of interest rates are below the rate of inflation. The short explaination is that the money borrowed today is worth less tomorrow because of inflation, but the cost of the money borrowed today is less than the cost of the money if it were borrowed tomorrow. This means that the money borrowed today and spent on such items as commodities and yes, housing, has more value.

The US Supreme Court says that IRA's can not be forked over to creditors, yet the House is taking up a bill that in effect negates Bankruptcy court. It is really interest to see how the House explains why it needs to interferer with a court room procedure that has done its job.
It does make one wounder if some financial companies have come to this “carry trade” and California's housing market conclusion and want US tax payer protection (the US taxpayer will be bailing out California) because of their mistakes.

Lobbyist rally around Captial Hill screaming that they need illegal aliens in order to compete. They need protection against dead beats who do not pay their credit card bills. They do not need tariffs on “VERY” cheap textiles from China because it is a tax on the US consumers. They need more tax cuts and for Washington DC. to get out of private businesses like Social Security. They also need to stop the over regulation of environmental law. That 111, 000 gallon oil/water spill in Alaska was, after all, mostly salt water. It is only poisons to the native plants. What is the big deal? Accidents do happen.

I think we need to put a fence around Washington DC. and put up signs on various buildings like the Capital and the White House with these words “Please, Do Not Feed The Animals.”