In an attempt to rescue the markets, the Fed used up their last straw by reducing the feds fund rates ¾ percent just now. This is the Fed's version of a "Hail Mary"- pass to quell the nosedive in World Stock Markets over the past 48 hours. It is an acknowledgment also that the Bush economy is within a breath of disaster.

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FLASH: In an unprecedented move before the opening of the stock exchange, the Fed after hours of arm twisting reduced the federal funds rate by 75 basis points or ¾ of one percent.

In an attempt to rescue the markets, the Fed used up their last straw by reducing the feds fund rates ¾ percent just now. This is the Fed's version of a "Hail Mary"- pass to quell the nosedive in World Stock Markets over the past 48 hours.

It is an acknowledgement also that the Bush economy is within a breath of disaster.

The weak link to the Bush policy is also irrevocably proven.

It's about Big Business and Corporate growth.

The US economy historically was known before 1980 as the melded conclusion of 200 plus million personal and family economies throughout the nation.

Only a Ronald Reagan could have somehow made Americans believe that somehow, their lives and "economy' were so small and inconsequential that policy had to be diverted to affect what he felt were the "drivers" of the economy.

The result, of course, was top-driven, trickle down economics. In this scheme, political motivation and stimulus is made in the form of tax policy for the large-scaled rather than the small. Banks, then dictate financial policy, rather than ideas and sound operational decisionmaking.

The prime rate became the ultimate and de-regulation the tool for making the big even bigger and chasing the small out of business. Economy of scale was the only principle with government assisted leverage behind it. And influence in politics begat even greater levels of influence to evolve into what later became known as Bush I and then Bush II debacles.

Lots of folks have commented about trickle down. It is not, however, the weakest link in the Bush version of Reaganism.

Tax Cut Policy

Ronald Reagan politically drove taxes to be a dirty word and tax increase and liberalism to be the brand of the Democrats; conversely tax cuts and conservatism the brands of the Republicans.

It was negative branding, rather than positive branding and the proof of that lies in the fact that the branding was far more important "" accurate or not "" than good economic policy which requires some degree of taxes to support war and peace; research and development and even a modicum of social services which even most Republicans and conservatives have agreed are required.

But while the tax cut policy was always wielded as the sword of the conservatives, it was neither broad-based and spread throughout the population (individuals versus business); nor focused on driving fundamental investment.

Instead, it was an approach that lay flat and without result "" impotent; instead of driving investments and technology to solve critical problems such as energy development.

There was no response in tax cutting to consumers except for a blind patriotic appeal to buy into the "greed is good"- phenomenon; where an economy was jawboned from being a producer-based economy into a consumer-spending economy; jobs were exported along with major US investment; and along with it came the weakening and collapse of the dollar and the weakening of a national security structure that makes the US a policeman; and the rest of the World as the policymaker. The simple fact is, within a consumer-based economy, consumers can not spend money they do not have to spend.

The first casualty of this effort became the double-edged sword of credit cards and ready "" but expensive credit; secondly, usary rates and deregulation loosened the binds and restrictions on abuse within the financial marketplace and all banks became loan sharks.

Within three more iterations we finally came to the point that in order to pay car loans with seven year maturity consumers had to cash in their home equity. In fear of the impending doom, banks bought their way through influence and campaign contributions to change the bankruptcy laws to create a new social trend in America "" economic imprisonment.

Add the policy of arrogance of America. The vision of spreading democracy world-wide has left America spread too thin; since democracy, as it was envisioned, was attempted to be spread alone.

So the tax cuts, wrapped in patriotic appeal became a tool to enrich investment in Wall Street, business, and internationalism (due to the imbalance of imports and exports) rather than to bouy individuals from the effects of recessionary trends.

At each downturn of the economy, the situation worsened as a result of denial of the basic facts of economic fundamentals and discipline.

Yes, the truth was that each tax cut was more about Wall Street than Main Street and for sure more focused on Wall Street than your home address. That is the weakest link.

Enter Tax Rebate Policy

Just last week, Bush announced that the Congressional Democrats had finally pulled his chain sufficiently to institute $100+ billion in tax rebates to drive counter-recession policy. The World markets have just responded correctly with record declines over the past 48 hours, because again, Bush and the Money party in Washington just don't get it.

The rebate program is again meant to reach business and save Wall Street "" another late, anemic attempt to save those most in-efficient at the expense of those consumers.

The tax rebates are again about saving business, not you.

Enter the Record Announcement on Reduction of the Federal Funds Rate

The Fed just announced a record 75 basis point decline in the federal funds rate to stave off what is expected to be record declines on the stock markets this morning.

This rate actually has even less to do with business and more to do with saving the banking institution. Again, the solution is becoming more separated from the true solution point "" the family unit economy. Once again, policy is so 180 degrees wrong that it exacerbates the problem and further exposes the weakest link of Bush economic policy.

We have a critically weak dollar. That is a symptom of long-term poor policy.

We have record deficits in the balance of trade that have been in existence since and widened dramatically since supply-side economics were introduced. Let's base it correctly. Supply-side economics have brought the American economy out of balance for two generations. We must balance the economic recovery on DEMAND AND PRODUCTION based economics, where jobs equal products and services; where economic value is far richer than retailism.

The weakest link of the Bush policy is that the CONSUMER is a slave to business production and to importation of cheap foreign goods.

The symptoms of the planetary change are consumerism and waste that puts style and flare over true value and function. Worth is determined not by substance or utility, but by access and pizzazz.

Certainly fashion is a good laboratory to examine today's calamity.

Is fashion more important than political economic decision making?

Hopefully, only for a few more days. Then maybe all Americans of all ages will cast themselves into a radical and extreme education on thrift and efficiency rather than Greed is Good.

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