Another Reason Inflation Won't Moderate

With President Chavez doing some saber rattling yesterday we say the price of oil surge and the price at the pump took a nice jump today right along with it.

Also there is news that OPEC will help control supply to help keep the cost of a barrel of oil around $90.

So much for inflation moderation.

We also see commodities, anything from gold to Minnesota wheat having a giant bull market.

The ECB has still been making it's stand firm that it will continue to fight inflation.

And this bit brought a smile to my face and my thoughts to hypocrisy.

The White House warn about legislation regarding mortgage reform.

This statement caught my eyes:

"Markets naturally self correct, rewarding good strategies and punishing bad ones. Government actions may be less effective at differentiating between the two and may prevent markets from creating products that benefit consumers," the report concluded.

No kidding? Then why oh why are is the Federal Reserve tampering with the markets every step of the way with their rate cuts. The cut before the market opened after President's Day was made to try to prop up the stock market. That was it. The full effects of the cut will not be felt for months. But the White House and Congress fully supports the actions of the Fed.

Now, I am not a financial historian, but it seems to me that Mr. Ron Paul may be right that the Federal Reserve needs to be disbanded. Open manipulating of the markets cannot be a good thing and the price to pay later on will be severe.