So Maximillion,Ron Paul and 237 Congressmen who want a detailed audit of the Fed are delusional? Ron Paul wants to abolish the Fed.Last election had 11% voter support and now it is much greater.Thousands of people in the US who want to go back to the constitution.You are driven by the popular media,if it's not on CNN or Sky then it's not true. There are none so blind who will not see.

Thank you Maximillion. Much appreciated.

Arjay, there are a number of aspects of this whole collapse-thing that you don't understand. Which is fine, we are all in that boat, me included.

But the big picture, at least, is worth taking time and effort to understand, if only to enable us to sort out constructive proposals from political expediency.

Also, it helps to know exactly when we should panic, and when we should just sigh, and move on.

>>Obama has given absolute power to the very people who caused the collapse.<<

Neither part of this holds water. The Fed was not the cause of the collapse, nor have they been given anything close to "absolute power".

>>Either he does not have a clue or is just a puppet of the power brokers.<<

Ah, the old "either/or" trick. Not nice.

As it happens, I believe he is making reasonable progress in a tough situation while holding a pretty weak hand of cards. And there is no evidence that he is favouring any particular cadre of "power brokers".

>>The Fed is creating all this debt money ,but it is not reaching the real economy<<

Right, but only up to a point. It has been authorized, and will be available if needed. What we have is a statement of intent, to prop up borrowing to a particular level. It is actually a good, not a bad thing, that it hasn't all been soaked up.

>>That is why we have interest rates beginning to rise here.<<

There is only the loosest connection between the actions of the Fed, and interest rates here in Australia. But we are largely following the same path as the US - we were given the Deposit Guarantee and the Wholesale Funding Guarantee, both of which allow the use of taxpayers' money to prop up various debt instruments that might otherwise collapse.

It is not ideal. It is not foolproof. It has benefitted our Banks in their ability to gobble up competitors. But so far, it is stopping the ship from sinking, as opposed to merely leaking.

And while I'm here, Arjay, I might as well address the wilder parts of your post.

>>The Fed did this during the Great Depression.The Depression of 1932 would not have happened if the Fed had not inflated the money supply then restricted the money supply.<<

Interestingly, one of the most respected researchers and analysts of the period, with a number of books to his name, is Ben Bernanke. And (shock, horror!) he largely agrees with you. And his promise to Milton Friedman - who also identified this as a significant factor - was "thanks to you, we won't do it again".

He knows what he is doing.

Again, it isn't perfect, and much of it is trial and error, since we haven't been in this situation before. But when it comes to choosing whether to believe him (and Obama) or Arjay, I'm afraid there's no contest.

No offence Arjay. But I actually think both the others at least understand how a balance sheet works.

>>4th of July 09 could herald serious demonstrations and perhaps violence.They must not give Obama any excuse to declare martial law<<

Oh, please.

This thread, and a few others reminds me of a bush walk I took in the 1970,s.
With three friends we walked in rain forest far from roads or even tracks down into the very heart of jungle like scrub.
I loved every bit of it.
2 of my fellow wanderers found trees ,young saplings in fact broken at about 10 feet.
4 OR 5 side by side.
They entered into a conversation that it must have been a yowie, only he/she could get that high.
Well traveler number 3 seemed spooked,while not totally seeing yowies he felt he said, spooked.
I kept my mirth to myself.
Near the river, right at the bottom of that very long walk my two over active minded mates found further evidence of a yowie , a moss covered log ripped apart they said by him her.
No they had no leg pull in mind the 3rd of us spooked still took of up the hill,over an hour later he was sweating and still distressed .
Other two?
Until one died, miss him a mate and relation,every day, they told this story often.
Me?
Evidence can be miss used can be mistaken, but I like any bush walker knew black cockatoos can do much damage if looking for food and grubs need to go very deep if hiding from them.
[ sorry about the spelling truely trying but may have to dump firefox, its spell check will not work for me ideas?]

Four US Presidents [Abraham Lincoln,James Garfield, Andrew Jackson, John Kennedy] have all tried to get rid of the US Federal Reserve.Even Woodrow Wilson in 1913 who signed away the rights of Congress to issue in currency later lamented his mistake.It is against the US constitution for any other body than the US Govt to do so.

All these presidents bar Andrew Jackson were assassinated.Although Jackson had a couple of attempts on his life,Jackson actually said that the banks were trying to kill him.

The power of the US Fed is too great.Power corrupts and absolute power
corrupts absolutely.

Arjay, just a little reminder. There have been around 90 attempts
to assassinate US presidents. In fact, just about all of them.

http://en.wikipedia.org/wiki/List_of_United_States_presidential_assassination_attempts

Its a gun culture country and being shot is part of the risk of
the job. Now my prediction is that no matter what Obama does,
his risk of being shot is in fact extremely high, Fed or no
Fed. Every nutcase in the US has a gun