Tag Archives: Federal Reserve

An Honest and Easy Solution to Wealth Inequality, by MN Gordon

This one simple trick would indeed go a long way to solving the problem of inequity of wealth inequality. From MN Gordon at economicprism.com:

Here we are, less than one month into the New Year, and absurdity levels have broken above 120 decibels.  Society, it seems, has spun itself up to a fever pitch.  The common culture is working towards a common freak-out.

This week, for example, we discovered, courtesy of U.S. Representative Alexandria Ocasio-Cortez, that: “The world is gonna end in 12 years if we don’t address climate change.”  This gifted insight was mixed between meticulous news analysis of a peaceful exchange between a smirking teen wearing a MAGA hat and a drum beating Native American wearing a costume.  But this ain’t the half of it…

The annual hootenanny for the elite, the World Economic Forum in Davos, Switzerland, took place this week.  The gathering successfully delivered many high-volume absurdities.  An impartial program listing includes:

Globalization 4.0, how cities can fight back against climate change, radically reinventing social systems, plastic pollution, safeguarding our planet, the rise of techno nationalism, media freedom in crisis, averting peak Europe, escaping extinction, when global order fails, a new deal for nature, shaping the future of democracy, and much, much more.

No doubt, the best and the brightest at Davos see these constructed ails as opportunities to provide technocratic solutions – at your expense.

Amongst all this noise, however, we’re after something different.  Our aim today, first and foremost, is directed at the valuable commodity of silence.  We don’t get enough of it.  We need more of it.

One area more silence is needed is the federal government.  In contrast to the small and quiet government envisioned by the nation’s founders, today’s gigantic federal rule is full of much clatter and racket.  Yet some progress is being made.

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Fire the Fed? by Ron Paul

Central banks are an idea whose time never should have come. From Ron Paul at ronpaulinstitute.org:

President Trump’s frustration with the Federal Reserve’s (minuscule) interest rate increases that he blames for the downturn in the stock market has reportedly led him to inquire if he has the authority to remove Fed Chairman Jerome Powell. Chairman Powell has stated that he would not comply with a presidential request for his resignation, meaning President Trump would have to fire Powell if Trump was serious about removing him.

The law creating the Federal Reserve gives the president power to remove members of the Federal Reserve Board — including the chairman — “for cause.” The law is silent on what does, and does not, constitute a justifiable cause for removal. So, President Trump may be able to fire Powell for not tailoring monetary policy to the president’s liking.

By firing Powell, President Trump would once and for all dispel the myth that the Federal Reserve is free from political interference. All modern presidents have tried to influence the Federal Reserve’s policies. Is Trump’s threatening to fire Powell worse than President Lyndon Johnson shoving a Fed chairman against a wall after the Federal Reserve increased interest rates? Or worse than President Carter “promoting” an uncooperative Fed chairman to Treasury secretary?

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The Fed IS the Ugly Truth, by Raúl Ilargi Meijer

The back and forth and massive publicity given to what the Federal Reserve obscures a central question: should the Fed even exist? From Raúl Ilargi Meijer at theautomaticearth.com:

This Fed thing just keeps going on, and it needs to stop. There is nothing in the discussion about the Federal Reserve these days that has any value other than it provides even more proof that the Fed has killed off the most essential elements of what once made the US economy function. All markets, stocks, bonds, housing markets, all price discovery, all murdered. No heartbeat. Pining for the fjords.

And instead of addressing that, and I’m not even talking about addressing fixing what is wrong, all I see is neverending stuff about Jay Powell using, or not using, terms such as “patient” or “accommodative”. Like any of it means anything coming from him and his ilk. Other than for making ‘investors’ a quick buck. Like a quick buck could ever trump the survival of entire market systems.

People discussing whether Jay Powell is doing a good job all miss the point. Because Powell should not be doing that job in the first place. The Fed should not have the power to manipulate the US economy anywhere near as much as it does. Because that power is perverting America like nothing else, and the US economy will never recover as long as the Fed holds that power. Is that clear enough? Do we understand that at least?

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The Ugly Truth, by Sven Henrich

The evidence piles up that the long-running bull market is over and things are going to get ugly. From Sven Henrich at northmantrader.com:

For years critics of central bank policy have been dismissed as negative nellies, but the ugly truth is staring us all in the face: Market advances remain a game of artificial liquidity and central bank jawboning and not organic growth and now the jig is up. As I’ve been saying for a long time: There is zero evidence that markets can make or sustain new highs without some sort of intervention on the side of central banks. None. Zero. Zilch.

And don’t think this is hyperbole on my part, I will present the evidence of course.

In March 2009 markets bottomed on the expansion of QE1 which was introduced following the initial QE1 announcement in November 2008. Every major correction since then has been met with major central bank intervention. QE2, Twist, QE3 and so on.

When market tumbled in 2015 and 2016 global central banks embarked on the largest combined intervention effort in history to the tune of over $5 trillion between 2016 and 2017 giving us a grand total of over $15 trillion in central bank balance sheet courtesy FOMC, ECB and BOJ:

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The Federal Reserve Is A Suicide Bomber With A Deeper Agenda, by Brandon Smith

How can the Federal Reserve “save” the economy if it’s hell-bent on destroying the economy? From Brandon Smith at alt-market.com:

Central bankers are sociopathic in nature and sociopathic people tend to behave like robots. When one understands the motivations of central bankers, or at the very least what their goals are, their actions become rather predictable. The question is, what truly motivates these people?

I believe according to the evidence that the central banks are motivated by ideological zealotry with the core purpose of total global centralization of economic and political power into the hands of a select group of elitists. This agenda is really just a modern “reboot” of feudalism or totalitarianism. They sometimes refer to the plan in public as the “new world order,” or the “global economic reset.” I often refer to the encompassing ideology as “globalism” for the sake of expediency.

To attain this goal, central bankers must influence mass psychology using traumatic events. Fear opens doors to centralization of power. This is simply a fact of social behavior and history. The more afraid a population is, the more willing they will be to give up freedoms in exchange for safety and security. Therefore, the most effective weapon at the disposal of the globalists and their central banking counterparts is engineered economic crisis — a weapon that can, if allowed, destroy entire civilizations almost as fast as a nuclear war, while still keeping most of the expensive infrastructure intact.

Beyond that, economic crisis is also a weapon that can influence a population to embrace even greater enslavement while viewing their slave masters as saviors rather than villains.

Despite what many people assume, central bankers are not driven by a desire for profit. They print their own capital, they hardly need to make a profit. Central bankers are also not driven by a desire to keep the current system afloat. They have demonstrated time and time again their habit of deliberately sabotaging the system through the use of inflationary bubbles followed by fiscal tightening into weak economic conditions. The U.S. economy today is just as expendable as any other economy the banks have destroyed in the past. It is not special.

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Tick Tock, by Jim Quinn

It’s only a matter of time before it all blows up. It’s probably already started. From Jim Quinn at theburningplatform.com:

“This country, and with it most of the Western world, is presently going through a period of inflation and credit expansion. As the quantity of money in circulation and deposits subject to check increases, there prevails a general tendency for the prices of commodities and services to rise. Business is booming. Yet such a boom, artificially engineered by monetary and credit expansion, cannot last forever. It must come to an end sooner or later. For paper money and bank deposits are not a proper substitute for non-existing capital goods. Economic theory has demonstrated in an irrefutable way that a prosperity created by an expansionist monetary and credit policy is illusory and must end in a slump, an economic crisis. It has happened again and again in the past, and it will happen in the future, too.” – Ludwig von Mises – 1952

Image result for recession

As the von Mises quote proves, economic cycles, artificial booms created by Federal  Reserve easy money and delusional human nature are cyclically constant across the decades. Anyone with an ounce of critical thinking skills realizes the current artificial boom, created by a feckless Fed captured by Wall Street banks and corrupt Washington politicians who took Dick Cheney’s “deficits don’t matter” mantra to obscene levels, will end in another financial crisis. Our Deep State controllers have “solved” a financial crisis caused by too much debt by tripling down on more debt.

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“The Federals Are Coming!” by Jeff Thomas

The next financial crisis will bring a general clamoring for the government to do something, which always translate to more power for the government and less for its subjects. From jeff Thomas at internationalman.com:

Americans were taught about Paul Revere’s ride in school. He was said to have ridden from his home in the North End of Boston, to Lexington and Concord, to warn the people there that Federal troops had landed in Boston Harbour and would soon reach the townships.

Of course, the story was tarted up a bit for the history books. First, it’s unlikely that he shouted, “The British are coming,” since, at the time of the ride, in 1775, he was in fact British – a British colonial – and would have regarded himself as British, as would the townspeople.

It’s also unlikely that he galloped through the towns shouting, “To arms! To arms!” since a major portion of the British colonists, particular those who were older and had a lot to lose, were loyalists, and taking up arms would be treasonous. (At that time, treason was one of only two capital crimes.)

So, what did he shout on his ride… or did he in fact shout anything? It’s more likely that he simply went to the back doors of select sympathisers and asked them to spread the word that the Federal troops were on the way. But, of course, that would have made for a far less colourful story.

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