I'm afraid Fed powerless to regain their vitality and oil prices.

<P>: Http://finance. Hearing, all the false assumptions deceived the U.S. Federal Reserve Board (Fed) policy makers and critics of the eyes. .Hawkish elements of which can be avoided conviction tightening inflation doves who are claimed to cut interest rates to reduce the risk back into the U.S. economy. .</ P> <P> While soaring oil prices could fuel inflation, while at the same time credit and housing market crisis and the high trade deficit still sounded the alarm bells of recession. .However, adjusting the interest rate alone is not sufficient to solve the problem. .</ P> <P> China and India, gross domestic product (GDP) growth rate has reached around ten percent, resulting in a shortage of global oil market conditions, oil prices which surged to nearly 100 dollars a barrel. .</ P> <P> U.S. oil consumption accounts for only a quarter of the world, the world's annual crude oil consumption in the new part from the United States even lower. .Even if the U.S. GDP growth rate of credit tightening down one or two percentage points, which is also the global oil consumption but the balance is not made under the small part, but also in the easing of domestic inflationary pressures will not have any effect. .However, tighter credit and higher gasoline prices, but it will drag on consumer spending, these factors together, the U.S. economy is no guarantee that this will not be scuttling the ship. .</ P> <P> If you want to see on foreign oil resources in the battle for cooling, the only way to improve auto mileage standards, conservation efforts should the Congress is now brewing over more more, in addition, we should also develop the domestic .oil, nuclear power and alternative energy sources. .Now it seems that no matter which party is afraid to succeed, requires people to make the necessary, but also the changes can be accomplished. .</ P> <P> another year and a half, about 2 million adjustable rate mortgages for (ARM) who will start at a higher rate of interest, thereby increasing the interest burden is one of them .Many people unable to afford. .If there are no feasible measures for re-financing, many real estate will be auctioned, the recent decline in prices will form the established formula. .As for consumer spending and employment on the adverse effects of the more self-evident. .</ P> <P> Fed Chairman Ben Bernanke (Bernanke) has been encouraging financial institutions to re-adjustable rate mortgage loans, extending the repayment period, but many of them simply can not be adjusted, because they have been used to package into .the mortgage-backed bonds. .These loans must be refinanced, but the availability of new loans was not any, because mortgage-backed securities market has gone. .</ P> <P> If the rating agencies when conducting risk assessments spare, investment banks can be packaged into mortgage bonds to earn higher profits later. .Hire and pay rating agencies is that these investment banks, not investors, there is a conflict of interest inherent in destructive power. .</ P> <P> S & P (Standard and Poor's) and other rating agencies in assessing fraud risk, to the bond ratings are always too optimistic. .The investors buy these bonds have suffered huge losses, they naturally would not believe the rating agencies, and will not dig into their pockets for new mortgage bonds. .</ P> <P> unless the bond rating agencies are required to be responsible for their wrongdoing, paid by investors back to the track in the ratings, and to take credible approach to assessing risk, or pension funds, insurance companies .and ordinary investors will not recapture investment in mortgage-backed securities carefully. .If you do not join these investors, who help to refinance adjustable rate mortgage loan funds, and better qualified buyers to other mortgage funds are paid not in place. .</ P> <P> Although lower interest rates can help some families to avoid being hit real estate foreclosure, but if want the real estate market back to temperature, more important thing is to consolidate the bond rating agencies, bond underwriting in the field to resolve other issues .. .</ P> <P> since the end of 2001, the U.S. annual trade deficit of 3,530 billion U.S. dollars by the expansion of the scale to 7,130 billion U.S. dollars, in this case, the U.S. government to private and government investors in large-scale borrowing. .A large part of foreign investors in the funds flow of the bonds and interest-bearing securities market, so that U.S. mortgage rates remain low. .</ P> <P> witnessed recently in the U.S. dollar weakened sharply against the euro, the foreign investors on the status of the U.S. economy is poor management of more and more impatient. .Their restless may force the United States shall be to raise interest rates to attract foreign investment, the U.S. mortgage interest rates may also rise. .This has the potential to bring more downward pressure on prices, increasing the risk of recession. .</ P> <P> Americans must try to narrow the trade deficit, or if the dollar U.S. economy may fall into recession and credit crisis; However, in the U.S. trade deficit and China's trade and oil trade each accounted for 40 .% or more. .</ P> <P> China has been artificially low exchange rate of RMB against the U.S. dollar, in order to allow China's exports to the U.S. products enjoy a price advantage. .If the RMB exchange rate not significantly higher, or the policy of the United States failed to offset the negative impact of China, then we may usher in two outcomes: either the record of Chinese forced to scale purchases of U.S. Treasuries, or China and the United States had .U.S. economy facing the terrible reality of a severe recession. .</ P> <P> along, Congress and the president is willing to maintain dialogue with China, which makes control of the U.S. credit policy increasingly in the hands of China. .</ P> <P> Sooner or later, Congress must face that it has been reluctant to address the real problems: energy, Wall Street crisis and trade deficit with China. .</ P> <P> unless Congress can play a role, otherwise, Bernanke To call in the hands of traditional monetary policy tools to control the economy is simply beyond their grasp. .</ P>.