With President Bush no longer threatening a veto, the subprime mortgage and Fannie Mae (FNM) and Freddie Mac (FRE) “bailout” bill sailed through Congress. In anticipation of its enactment, Congress had the foresight to raise the national debt limit to $10.6 trillion. Who says that politicians don’t plan ahead?

With the nation’s financial infrastructure crumbling before our very eyes, the country’s top two economic policymakers made their way to Congress last week for an extraordinary episode of political theater.

As oil whipsaws its way toward the unheard-of-level of $150 a barrel (crude closed at $134.60 yesterday, extending a multi-day skid, but traded above $147 as recently as Friday), Americans are finally responding to the pressure of higher gasoline prices and have downshifted their consumption.

Editor’s Note: There is nothing the US Treasury can do to prevent further losses for the dollar, says Peter D. Schiff, not when the Fed’s policy on inflation is firmly guided by fantasy.

Throughout history, governments have always used crises to justify blatant power grabs. All too often, the “expanded government powers” that resulted from the moves remain in place — even after the crisis subsides.