estb 1776


the constitution is the revolution

Congress Questions Big Oil, Expands Power of the Federal Reserve

Once again, Rome proves no competition for Washington, D.C. when it comes to putting on a circus.

The U.S. Congress wants to question big oil according to this AP story while at the same time expanding the powers of the Federal Reserve according to a plan put forward by the U.S. Treasury Secretary.

Do the members of the U.S. Congress not know that oil is traded in dollars? Thus, any decline in the dollar will result in an increase in the price of oil.

I keep a record of the value of the dollar from 1790 to 2007 on a spreadsheet for quick reference. I see that 1971 was the year the dollar converted to the monopoly money standard; 100% backed by the same thing monopoly money is backed by—nothing. Of course, the dollar was backed by nothing as far as Americans ability to convert after 1968, but Washington, D.C. has been a circus for a long time and non-Americans could convert until 1971 so we use that as our year of reference.

So we have 2007 minus 1971 equals 36 years. 36 glorious years since America adopted the monopoly money standard, with the result that the Federal Reserve gained complete and absolute control over management of the U.S. dollar.

So a few calculations, a little cut and paste and I have the entire history of the U.S. dollar in 36 year increments from 1790 to 2007. Do you want to guess the worst 36 year span of performance? Right, 1971 to 2007. The second worst? Right, 1970 to 2006.

So, of course, the Federal Reserve would be the natural choice to handle the markets, this is a circus.

And Barrack Obama says we are all “Hamiltonians” now. It would appear that Obama is upset that George Bush got dibs on the “we are not in a recession” phrase, and so Obama got creative and came up with another way to say things are going great economically.


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