Bush's bailout plan fails in Congress, but wait! the Fed still controls our lives...

According to the Washington Independent's article from a week ago, the Bailout Bill "would allow the Treasury to pay up to $700 billion for whatever 'troubled assets'...from whatever banks at whatever price it sees fit." A recipe for disaster. But, there's hope: Congress did vote against the bailout plan.

However, Sen. Ron Paul from Texas says that, apparently yesterday "the Fed pumped in over $600 million in credit into the markets, without Congressional approval." Sen. Ron Paul then goes on to say that, still, he doesn't understand why Congress even bothered to vote, because at the end of the day, the Fed has the power to make the final decisions on corporate bailouts. Hmmm...good point, buen señor.

So basically they hold this vote just to help the people feel like we're taking part in a supposed democracy, and to make sure there isn't soooo much opposition. If the Fed does agree to bailout these companies, however, the dollar will suffer: basics of of Political Economy 101. Even if the pressure to resist bailout is strong, and the Fed wisely decides against bailout, the Fed still has the power to create money (to ease our current financial problems), which will thus cause inflation, in our already falling economy.

I'm going to write a letter to my Congressman. I can't have the dollar-euro exchange rate suffer anymore!