From the June 2004 Idaho Observer:
Pushing US over the edge
Greenspan authorized Fed to dramatically inflate money supply in recent months
Playing the financial markets is largely a guessing game because its rules are not defined by the marketplace -- the rules are continually changing in secret and trends come and go based on manufactured events -- not supply and demand.
However, a banker's decision to dramatically inflate money supply, while not indicating exactly what will happen next, does foreshadow that something is going to happen.
According to Robert McHugh at www.safehaven.com, during the month prior to May 30, 2004, the Fed had hyper-inflated the M-3 (cash) money supply by $155 billion (by $46.8 billion during the week of May 23 alone). Something is up, McHugh commented.
The Internet was buzzing with activity over the dramatic increase in money dumped into a slumping American economy. Most comments indicated a belief that the move is unprecedented in U.S. money management history. The increase, depending upon who you talk to, represents between 22 percent and 30 percent annualized growth in the money supply.
Another view shared by those buzzing about the money supply is that the Fed is behaving irresponsibly. One of the provisions of the Federal Reserve's charter is to maintain a stable money supply.
There must be a crisis of historic proportions coming, and the Federal Reserve Bank of the United States is making sure that there is enough liquidity in place to protect our nation's fragile financial system, said McHugh.
The amazing thing is, the Fed's actions mean they know what is about to happen. They are aware of a terrible, horrific imminent event. What could it be? he asked.
Aside from the money supply, there are many signs that something big that has been looming on the American horizon for sometime may be getting ready to drop anchor.
* A $7.3 trillion public debt.
* A government that just raised its debt ceiling again to empower itself to keep spending money it does not have.
* A government that prefers to make more enemies, produce more bombs, put more soldiers in uniform rather than amend the diplomatic gestures that makes enemies of nations and men in the first place.
* A public so frenzied to keep up with the Joneses most households must service substantial credit card debt.
* In late May, an unprecedented six aircraft carriers left their U.S. moorings for destinations unknown.
One need not be a financial marketeer to see that something big is coming. We can only speculate what it will be.
It appears that our greatest challenges lie ahead. We should get our spiritual and temporal houses in order and be prayerful.
Bush rewards Greenspan with 5th term as Fed chairman
When President George Herbert Walker Bush appointed Alan Greenspan as Federal Reserve Chariman in 1987, the national debt was $2.35 trillion.
As of May 18, 2004, when President George Walker Bush reappointed the 78-year-old Greenspan to an unprecedented fifth, four-year term as the Federal Reserve chairman, the national debt had climbed to $7.2 trillion.
Under Greenspan's direction, the public debt has increased nearly $5 trillion in just 17 years. Greenspan's reappointment is a powerful indication that the Bush administration is satisfied with the level of indebtedness the fed chairman has been able to attain thus far. The reappointment also indicates that the Bush administration is actively encouraging U.S. levels of indebtedness to continue increasing.