The Fed can’t fight inflation until it figures out what causes inflation.
Too much money. Don’t tell the goldbugs.
The Fed causes inflation.
It creates money out of thin air.
It is the US government’s charge card.
By creating and pumping dollars to banks it dilutes the value of existing dollars, in short it dilutes our savings (for those of us that still do that) and ultimately the value of our hard labor.
The Fed is behind what Ron Paul calls the inflation tax.
And it is a tax.
It’s a tax that gets added onto product pricing. This tax is called inflation.
We still have the power to shut down the Federal Reserve.
The Federal Reserve is no more ‘federal’ than Federal Express.
The federal reserve is a private banker’s cartel.
Bernanke is merely a liason between the Cartel and Congress.
When people go to get a mortgage loan or any loan, the bank does not find funds for the loan from other depositors.
The bank borrows money created from nothing from the ‘Federal’ Reserve. and it injects it into the economy, alot goes into housing.
Look at what happened to housing prices. People think they’re rich but then they look for another house and they see that prices are up all over. Those that act swiftly can make some dough on arbitrage of real estate. But most folks want to have a home and not a game of musical houses.
Who wins? The homeowner isn’t motivated to move if there is no price advantage. But when he/she gets their property tax bill in the mail and they see that their rent to their County just went through the roof because their home value went through the roof, then they know who won.
The Fed created all that.
The Counties and States and Government employees are the winners. Ask if your state has budget problems. Most states are flush with cash based on increases in property taxes. California is an exception because it is living way beyond its means.
We still have the power to shutdown the Federal Reserve.
Our Founding Fathers fought hard against allowing the establishment of a monopoly to create money out of thin air. They knew it would eventually control everything and it does.
The bankers want control and then they want more control. They can never get enough control.
Shutting down the Federal Reserve would get people out of debt, get them to save and stabilize the dollar.
Monetary functions of the Federal Reserve could easily be handled by the Treasury as it was historically.
In Amercican history the Fed was allowed to exist (1913) in return for allowing the government to impose an income tax (1913) on the very wealthy. JP Morgan was hated because he owned the town and all the stores in the town. He also determined who went to Heaven and Hell because he controlled many of the town’s churches.
The American People hated JP Morgan and his ilk.
So Morgan, Warberg and others made a deal to scam the People via a little routine bribery of Congress. The deal was simple. In return for paying an income tax of no more than 7% of income over $20,000, Morgan and others would have their money press, with US Gold as the reserve backing. With a gold reserve of 20%, Morgan and others could create 80% new money from nothing and loan it out at rates they set. The interest on those loans was much more than Morgan and others would ever pay in income tax.
And today the Fed (US Central Bank Cartel) has no gold to set a reserve, so they invent all manner of academic gobbledegook to measure however they define inflation to somehow control their money creation.
What a deal.
And now Americans are swimming in debt with a devaluing currency. But that’s not what is really scary. What is really scary involves demographics and yes the Fed had an indirect effect in causing the demographic tsunami that is on the horizon.
But that’s a whole other thread.
One last note.
Before the Fed gets shutdown, they will try and scare the bejeezus out of all Americans that think of voting for shutting them down. That will only be them trying to save themselves.
And what will America be like without the Fed? Find an American historian and ask what was America like before the ‘Fed’. Most people would be surprised that America was a wonderful place where life and living made sense.