New "Secret" Federal Reserve Facility, Italy Continues to Cause Worry, and How China Helps Out U.S. Consumers

Check out this rather conspiratorial report on a new Federal Reserve information technology building in Richmond, Virginia:

Despite the dramatics, this is an interesting development.  Especially with the possibility of internet hacking mentioned in the video.  Though I have no doubt that the Fed's information technology database is heavily encrypted and protected, God only knows what would happen if Anonymous somehow hacked in.  It could cause massive global banking chaos, which may or may not be such a bad thing considering where we are heading anyway.

It was reported yesterday that there was an emergency meeting by EU finance ministers to determine what may have to be done about Italy which looks to be the next domino in the collapsing system known as the European Union.  Catastrophe seems to be avoided for now but the scare is triggering massive sell offs:

(Reuters) - Stocks and the euro fell on Monday as fears the euro zone debt crisis could spread to Italy caused investors to sell risky assets and snap up safe-haven debt, pushing the yield on the benchmark 10-year U.S. Treasury note below 3.0 percent.

No surprises here.  Those investors who are trying to rid themselves of Italy debt will continue to be demonized.

When it comes to demonizing, no other country seems to get as much grief from U.S. politicians than China.  All those cheap Chinese goods that flood Wal-Mart shelves are used to demonstrate a loss of U.S. manufacturing.  What China haters always fail to mention is that these cheap goods come at the expense of Chinese citizens facing massive inflation at home.  See this chart from Mark Perry on how clothes and toys benefit the most from China's industrial policy:

Well, at least the kids will be happy.