Martin Hutchinson, contributing Editor to Money Morning and retired investment banker, shares his analysis of the current Federal Reserve Bureaucracy.

Alex Green, Chief Investment Strategist for Investment U, knows the dollar’s in the gutter and contrary to popular opinion, thinks it has nowhere to go but up.

Baltimore — (TFN): Did you feel it? Just a couple of hours ago, you went into debt for another $106. You never signed any paperwork or agreed to it – a handful of unelected officials took care of that for you – but you’re now on the hook for at least another Franklin.

Earlier today, the Treasury auctioned off yet another chunk of American debt. This time it offered seven-year bonds to the tune of $32 billion. In all, the nation will go in hock for yet another $118 billion this week.

What’s the best way to get through a debt crisis? Straight through was our advice last week. For at least a thousand years, the business cycle went round and round without help from central bankers or economists. It is only since these geniuses have been on the case that really serious problems have arisen.

The Organization for Economic Cooperation and Development (OECD) raised its growth outlook for industrialized countries for the first time in two years and said the United States would experience a quicker recovery than Europe.

When the Labor Department recently reported that U.S. payrolls fell by 345,000 jobs in May – the lowest total in eight months – commentators were suddenly spotting “green shoots” of economic recovery virtually everywhere they looked.

By now, you have surely heard that our elitist banks passed their recent government sponsored “stress test”? Forget about it! Relying on this incestuous bunch to grade themselves is like putting Madonna in charge of screening convent applicants. Take no comfort in shams of this nature.

The Fed pulled out its “nuclear” option last week when it announced coming purchases of $300 billion in long term Treasuries (and other similar extravaganzas). This is an act of total desperation.

I thought I was dreaming when I read on Bloomberg.com that short-term Treasuries rose in market value as buyers rushed to buy them, thus “pushing rates on the three-month bill negative for the first time, as investors gravitate toward the safety of U.S. government debt amid the worst financial crisis since the Great Depression.”

After U.S. Federal Reserve policymakers meet today (Monday) and tomorrow (Tuesday), most experts expect a half a percentage point cut in the benchmark Federal Funds Rate – which is already 1.0%.