The Real Problem(s) With The Fed

There’s a problem with the Federal Reserve.

Actually, there are tons of problems with the Fed.

Besides the fact that they shouldn’t exist at all, they are always behind the curve on everything.

Take interest rates, for example.

One of the biggest things the Fed does (the biggest is bailing out their too-big-to-fail bank constituents when they implode into insolvency from their greed) is manipulate interest rates.

The Fed’s original fake mandate was to manipulate rates to effect stable prices – in other words, to curb inflation when it reared its ugly head and guard against deflation when it cast a shadow on the economy.

Not that it matters, because it is what it is, but the Fed’s timing in manipulating rates is mostly what causes inflation or deflation.

Today, we’re going to talk about the wool that’s been pulled over everyone’s eyes, and what the Fed should be doing.

Why the Fed Exists

Lo and behold, in 1977, Congress amended the Federal Reserve Act of 1913 thusly authorizing the Fed to “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”

Job creation in addition to price stability is known affectionately as the Fed’s “dual mandate.”

Which, if you think about it, is a huge swath of a nation’s economy and destiny to cede to a private institution (yeah, the Federal Reserve System is private), itself a bastard child of America’s and Europe’s leading bankers of their day and their big bank progeny today, is insane.

Morally and ethically corrupt Congresses, having punted their most challenging and important functions and responsibilities to a made-for-government-financing loan shark, have no other choice but to cede the Fed the ability to manipulate interest rates to promulgate their mandates.

That’s the wool that’s been pulled over everyone’s eyes.

In a nutshell, the Fed prints money to pay for Treasury-issued debt, so politicians don’t have to raise taxes to pay for the programs they legislate into existence, which they use to buy votes.

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