Is the Federal Reserve a den of thieves? Or independent?

Suspension: Fed… why would anyone put a greedy fox in charge of the hen house. Mr. Armstrong, you of all people have more than a passing knowledge of the corruption of the big banks. These are the gentlemen appointed to “direct” monetary policy for our greater good. You simply don’t understand why you still respect and discredit a gang of thieves.


Flexreply: there leaked Difference between New York Bankers and the Federal Reserve. In fact, I’m in favor of banning CEOs from Goldman Sachs from heading the Federal Reserve, the Treasury Department, or any government agency. The Fed has its own agenda and not flooding the economy with money for Biden. Powell said The Fed will not be in the business of climate change Which is the opposite of ECM and Christine Lagarde, which is political, and why the ECB cannot survive. February may have bankers, but their personal interest is at odds with that of politicians. Additionally, don’t paint all bankers with the same brush as Goldman Sacks which I agree is a giant squid and I believe is a huge threat to the global economy.

The Fed was originally supposed to be a private bailout entity to replace JP Morgan and what it did during Panic of 1907. The stimulus occurred through buying Corporate Papers – Not Government!

The Federal Reserve will expand the money supply during economic downturns and the money supply will contract as company notes pay off. There was no such power to always make money at will on a permanent hidden basis. A banking crisis occurs, as now in Europe, when banks cannot meet the demand for withdrawals because they have lent money for the long term. They will have to sell their wallets at discounts to raise funds to meet depositors’ demands. Flex money It will meet the demands of depositors without the need to liquidate portfolios.

Flexible money It was not an evil plot. The goal was to keep the money flowing when the banks were shrinking. Keep in mind that there were also restrictions on banks for regions. The Clintons removed all restrictions and allowed it highway Banking that withdraws money from local areas and deploys it elsewhere. If we bring back the central bank to perform its original function, the economy will be more stable. Our problem is that we live in a political economy where politicians can’t keep their fingers out of everyone’s pockets.

There was such a shortage of cash even during federal expansion policies because people would hoard their money during times of economic uncertainty. This is why there are still large quantities of Roman coins discovered. Human nature has not changed. During the Great Depression, more than 200 cities issued their own money because there was such a shortage of trade that it could not last.

We even have stock exchanges issuing a depressed record backed by the financial markets. There was not enough money to facilitate the economy. This is why the Federal Reserve has the power to create money – not the Treasury. Even the first occurrence of such private money occurred in 1815 thanks to the War of 1812, but then with the eruption of Mount Tambora which resulted in the Year Without a Summer – 1816.

This is a particular note from 1837 because of the panic and resulting shortage of money at that time as well. The entire ability of the Fed to have the power of flexible money has been the ability to create money in times of trouble. People have focused on the Federal Reserve’s balance sheet and spun all sorts of conspiracy theories. What they didn’t address was what I was warning the Fed about buying into 30 year notes Not Domestic money supply increased because the sellers were mainly China. The money was going outside the United States. This confusion has led others to claim that MMT is now economic theory because an increase in the money supply fails to produce inflation. Again, these ideas were based entirely on a local fish bowl economic model. We live in a globalized economy, and expanding the money supply has no real effect on anything because these theories assumed that money was still domestic – which it wasn’t.

When World War I came, Congress ordered the Federal Reserve to do so Buy government paper; Not corporate. They never restored it to its original design. When the Great Depression came, Congress under Roosevelt’s direction usurped all branches created to be independent to manage domestic money flows and set a single national interest rate and the board was to be appointed by the president for all his socialist agenda. They have ordered the Fed to back US debt this pair During World War II to prevent a rise in interest rates.

UB Fed-1951 Bank

As World War II approached, politics took hold of the Federal Reserve. Once again, the Federal Reserve has been ordered to support US government bonds at par. This decree was not lifted until 1951. The Fed remained more or less independent after that until the Vietnam War. Politicians viewed her power to increase the money supply on a flexible basis to mean that inflation was their problem, not Congress’s. Politicians began spending whatever they wanted to win elections and criticized the Fed if inflation appeared when they had no control over Congress’ fiscal spending.

It is an independent country and has been at war with Congress before. The elastic power of money is necessary because the Federal Reserve has expanded and then contracted the money supply. I would like to stress that the Fed is returning to its original design and should only buy private paper – not the government. The Fed incentivizes the government under orders from World War I to buy government paper. YOU SHOULD NOT BUY GOVERNMENT PAPER ANYMORE – PERIOD!

Position Is the Federal Reserve a den of thieves? Or independent? It first appeared in Armstrong Economics.

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