One of the reasons I so enjoy Ron Paul (and there are many reasons) is because he raised the Federal Reserve as an issue in the eyes of the public. The Fed would have been very pleased to stay just as it was, a collection of supposed economic wizards gathered around the monetary cauldron in the Eccles Building. Obscured from view. In the shadows, where the “secrets of the temple” were shared with a select few and in hushed and important tones.
Abolishing the Fed shouldn’t really be considered a radical idea. Increasingly it is not.
More people understand the underpinnings of the Fed, why it exists (as a backstop for the banks) and are aware of its century of failures than ever before. Saying this however, many many more people need to really learn about the Fed for progress to be made.
There was a time when the “prosperous middle class,” not typically rich people, could put a nest egg (or a good chunk of a nest egg) into certificates of deposit and at least expect that the money would beat the rate of inflation. I met many of these people in another life. They weren’t the most savvy of investors but they were typically disciplined, had good credit, and had more often than not spent a lifetime working hard. That $200,000 in the bank (or a couple of banks) constituted their life savings and if these folks were wise,
As we said in the previous post, the War On Cash is a war for power. (Like pretty much every war is.) On one side are the central planners, governments, central banks. On the other side is the rest of the world.
The central planners see that their vast experiment post-2008 is failing. As such they are getting desperate. The planners are increasingly of the opinion that the real problem is that they don’t have tight enough control over the world economy (let that sink in) and that cash in the hands of everyday people is a danger to their centralized regime.
Here’s another list to cross check with whether your senator voted “yea” on the Omnibus bill.
I look at it this way. We are starting to get a very clear picture of who is on what side of the great crony debate. Those who think that the status quo can continue, even at this late date, need a wake up call in November.
Of course some of his proposals are not in line with what we’d want of course. But there are areas of public policy where small government people and people like Bernie Sanders can work together. Focusing on the Fed in a serious way is a good place to join forces. In the end there will be significant battles over policy, but before that real progress can be made.
We think. All indications are that it will happen though. Doesn’t it make sense for the whole world to wait with bated breath for the decision of an economic politburo? So capitalistic.
We disagree with a couple of points in this article, but overall he’s right. The middle class is indeed dying. A little more each passing year. But it’s not robots and foreign workers which are fundamentally to blame. That we live in a crony, highly financialized economy has more to do with it. Vast swathes of the American people are shut out of the economy because of things like occupational licensing and other regulations which benefit vested interests. Piles of red tape hold people down.
Calls to reform, audit, and even eliminate the Federal Reserve have been growing in recent years. We certainly call for an end to the Fed and I encourage anyone interested in monetary policy and the Federal Reserve to read Free Prices Now by ACC co-founder Hunter Lewis. Hunter is a scholar of the highest order and a remarkably successful financier. If you want to understand the sins of the Federal Reserve read his book.
Regular readers of ACC already know this both because we often make the case against the Fed but also because, in our opinion our readers are just a particularly smart bunch. But that the Fed is no friend is a point which deserves to be made often.
The Fed is not on your side. It is on the side of the big banks. Always keep this in mind. In most cases Yellen and Company really couldn’t care less about you or me.
In 1937 after years of a meager “recovery” the economy slumped again as artificial economic props were taken away. The Great Depression was born anew. 4 years later we were in a global war.
Let’s see, depression, then mediocre growth underpinned by artificial economic stimulants, sounds pretty familiar.
This is what happens when interest rates are set by a politburo instead of by the market.
Well yeah. But sadly this is a revolutionary idea for many of the world’s old school Keynesian economists.
The key drivers for the increased inequality (as we have said many times before) are the financialization of the economy and the emergence of a truly crony capitalist system. The two are of course entwined. The cronies enjoy bailouts and bonuses from banks which get bailed out. The unconnected get to do the bailing. (In various ways.) That’s basically the gist.
Ole’ Helicopter Ben put this long emerging trend into overdrive. But don’t blame him for inflating the assets of the already wealthy while the rest of the country was left behind.