PRESS RELEASE

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The Fed Continues Hyperinflation,
Showing It Has Lost Control of the Crisis

Aug. 10, 2010 (EIRNS)—In its meeting today, the Federal Reserve decided to escalate the hyperinflationary bailout. The move is basically an admission that the Federal Reserve has totally lost control of the financial crisis. With Kansas City Fed President Thomas Hoenig dissenting, the Fed vowed at the meeting to continue buying securities, thus creating more U.S. government debt, and thereby reneging on its pledge to reduce its $1.4 trillion securities holdings—much of it mortgage-related toxic waste. The Fed will pour billions (up to $200 billion) of new non-existent money into buying worthless assets because there is no recovery. Or, as they put it, "the pace of recovery in output and employment has slowed."

Hoenig, who had been the first of the Fed regional presidents to support reinstating Glass Steagall, opposed the Fed's reversal of its stated policy that it would bring down the $1.4 trillion in assets holdings by $200 billion. This amounts to another big bailout—with no need to ask the Congress or the American people—and another massive jump in hyperinflation.