March 12, 2008 (LPAC)--The U.S. dollar went into a more dramatic collapse mode today after the Federal Reserve's panicked $400 billion liquidity-pumping announcement of March 11--but British spokesmen continue to call for more, including direct mass purchase of worthless bank securities by the Federal Reserve. They call this "nationalizing losses."

Senior columnist of the Financial Times, Martin Wolf, for the second consecutive week, cites New York University's Nouriel Roubini estimate that financial losses could total $3 trillion from systemic breakdown, and urges a huge Federal government bailout of worthless debts in the United States. The U.S. government, says Wolf, would have to mount a rescue, through nationalization of all losses. ``We would have more than the biggest U.S. financial crisis since the 1930s. It would be an epochal political event.'' To counter this, ``In extreme circumstances, inflation must be attractive.''

The Financial Times second editorial today also urges the Fed to go to a direct and massive bailout, and ``take all of the credit risk on to its own books''!

Washington Post columnist Steven Pearlstein in his March 12 column, ``Another Bailout, and It's Not Over Yet,'' notes that the Fed is now in unlimited bailout mode. ``They leave little doubt that, despite the heavy [$400 billion] dose of monetary medicine already in the pipeline, they intend to add another dose at their meeting next week. [Mar. 18].... The chances are that we'll have several more market meltdowns and Fed rescues...'' The latest $200 billion added yesterday was aimed at the big investment banks, several of which have been the subjects of market rumors of insolvency, rumors which are themselves understated.