Interest Rates lowered again...

In an effort to stimulate investment, the Fed has again lowered rates.   I'm still wondering why though...

Liquidity has been holding steady thus-far, and inflation seems to be growing.  Growth is measly, but supposedly holding positive - at least according to our pointy-haired overlords.

Here's what I see happening though... this newfound investment credit isn't going to build new capitol.  It's not going towards real-estate, manufacturing, and I'd venture to guess that little of it is going overseas.

No, it's going into commodity markets.  Oil, grain, pork bellies, milk.  Yeah, exactly.  In other words - our supposed bailout is only going to exacerbate inflation!  Investors don't care, and honestly what choice do they have?  If I had 50 million sitting in the bank, you'd bet I'd be playing commodities and currencies.

It's time for [insert person in charge] to do the handout I'm afraid.  Yeah, it'll look weasel-y and "corporate friendly" - but honestly it does work.  Time to give away the capitol improvement tax credit.  Time to spur labs making cars, computers, and everything in between.  Do it on the cheap with big credits and small funding - and you'll likely drive the US into another boom 5-10 years from now.

Until then... every-time you buy a 2 dollar loaf a bread and a 6 dollar gallon of Milk, you can thank Mr. Investor and his friend Uncle Fed.   Break out the Caviar!