The High Cost of a Band-Aid from the Feds . . .

I read an article today that really caught my attention. According to this article, and I have included other statements found therein, the morning the Feds met, January 22, 2008 the interest rate was 4.25% with a drop expected. Now, less that 2 months later, the interest rate is 2.25%. Although I realize math has nothing really to do with our American economy, our interest rates have dropped an average of 1 full percentage point a month. I find that fact to be mathematically frightening. At the present rate of economic "slow growth" and the current trend of governmental "short falls" in both function and finance, we have just a little over two months before we have no interest rate left to manipulate.
I really don't blame this entire financial crisis on our present administration. It's been "trickling down" for over 25 years. I believe it was our current President's father that called this plan of Ronald Reagan's "voodoo economics," and yet his son followed the Reaganomic plan and here we are today! I am well aware that the Clinton years were simply a matter of creative bookkeeping with great favors offered at some really high prices. I was pretty sure before Clinton was ever re-elected that both Mexico and China had a more than casual "interest" in our economy.
I think what bothers me the most is the fact that we've been being told one thing, while we can clearly see something else. That's what I've had against this administration all along. I don't care if it's bad intelligence, poor insight, bad math skills or just plain ol' political lies, the outcome has been the same in every situation. We're told everything is under control, and then it takes more just to attempt to stabilize. It doesn't matter whether it's a war in the wrong country, Wall Street, outsourced jobs, or political mayhem to distract us, we are suffering from great instability on every hand and our power has always been in our military and our money. I just really don't like the fact that I can't trust my own government to be honest with the people to whom it is accountable.
I found these quotes today at FOX Business.
>>>“Fed officials are in full crisis mode and are striving to prevent a collapse,” said Maury N. Harris, chief economist at UBS.
John Silvia, chief economist for Wachovia, said the impact from the rate cut won’t be felt for several months, but that from the Fed’s point of view the move was necessary.
“We’re in the middle of the worst part of the recession,” he said.
The federal funds rate, the interest that banks charge each other on overnight loans, now stands at 2.25%, down from 4.25% at the beginning of the year.<<<
We've always been delusional when it came to thinking our morality was our source of pride and strength, but for a time we did have a powerful military and a strong economy. Now our military is exhausted and spread too thin and the average working man has to squeeze a dollar til the eagle screams.
Saving the big banks with money from the Federal Reserve still does nothing for the hardworking American just trying to buy gasoline to go to work to buy milk and bread . . .
Just which side of the blurred line will we find ourselves standing when the difference between a Capitalistic Republic and a Fascist State becomes clear?
Riches profit not in the day of wrath: but righteousness delivereth from death. a Proverb of Holy Scripture