BernankeOn February 24, Congressman Ron Paul (R-Texas), at a hearing held by the House Financial Services Committee, asked Federal Reserve Chairman Ben Bernanke whether he was aware of allegations that the Federal Reserve had been complicit in the Watergate cover-up and in the illegal funneling of billions of dollars in loans to Iraq’s Saddam Hussein:

bailoutsOn Wednesday, February 10, Federal Reserve Chairman Ben Bernanke expressed confidence that every cent of the Federal Reserve’s exposure to insurance giant AIG would be repaid. Regarding a combined $116 billion dollars that the Fed provided in emergency loans to shore up AIG and back the purchase of Bear Stearns — an amount that totals about one-fifth of the Fed’s entire balance sheet, Bernanke said that the Fed “expects these exposures to decline gradually over time. The [Federal Reserve] Board continues to anticipate that the Federal Reserve will ultimately incur no loss on these loans as well.”

International Monetary Fund head Dominique Strauss-Kahn made a series of headline-grabbing statements late last week, calling for new supervisory authority over world financial markets and even the exploration of a new global reserve currency.

houseComing in the immediate aftermath of news that the sale of new homes dropped in January to its lowest point in 50 years, and that existing home sales hit a seven-month low, other economic indicators are offering further confirmation that prospects for the U.S. economy are dismal, at best.

There are further signs that Barrack Obama’s jobless “recovery” is, in fact, no recovery at all. The latest indication of the fundamental unsoundness of the American economy is found in statistics from the Commerce Department. According to that department, the sale of new homes plummeted in January to the lowest rate recorded in fifty years. As The Washington Post reports: