|The Federal Reserve System, created by Congress a century ago, has become Frankenstein's Monster today. This is something Ron Paul has been warning us about for years, but the current Fed has been blowing a series of larger and larger bubbles which are distorting the economy so badly that the ultimate outcome will inevitably collapse our economy, our jobs and our social structure.
One of the side-effects of Fed-bubbles has been the increasingly-large wealth of the top 0.1% of the country. Only a few hundred families are now the majority owners of total wealth in this country. This is unsustainable and will inevitably result in rule by a very small minority of citizens. When the tyrannical minority reach a certain level of authoritarianism, look for the revolution to begin. We are skating on very thin ice right now. The future will bring radical change to the USA.
John Hussman's comments today sound an important warning as well:
Regardless of my objections to the course of monetary policy, I think the Fed’s intentions are good, and I share Janet Yellen’s concern for the unemployed. I just believe that there is no demonstrable mechanism that reliably links the actions of the Fed to the outcomes it seeks, and that the unintended effects are greatly underestimated. If there is any lesson to be learned from the past 15 years, it is that the U.S. economy is desperate for scarce savings to be allocated toward productive investment and job creation, and that the economy is enduringly harmed by policies that divert investment activity toward speculative revelry. The impulse to address the collapse of one cyclical distortion through the creation of yet another has the consequence of structurally undermining the economy for a far longer period.
Monday, January 20, 2014
The Fed is Killing Our Economy
Posted by Unknown at 15:36