Mastering the Social Maze means you understand the Fed attempts to block you from achieving financial independence. It exists to feed the greedy aspirations of the Elite and its Soldiers…at your expense.
Here’s Ron Paul reporting from Laissez Faire Today “President-elect Donald Trump has acknowledged that, while his business benefits from lower interest rates, the Fed’s policies hurt most Americans.
During the campaign, Mr. Trump also promised to make audit the fed part of his first 100 days agenda. Unfortunately, since the election, President-elect Trump has not made any statements regarding monetary policy or the audit the fed legislation.”
As you read this short report…you will learn just how the Fed pulls its swindle. In addition, we’ll speculate on how Donald Trump plans to castrate the Fed..or if he’s all talk.
Interest Rate Manipulation
Just think about it. The Fed’s manipulation of interest rates completely denies reality. The natural rate of interest is just that…natural. It’s the result of the interplay of market forces. People in their buying and selling determine prices, wages and interest rates. Only a psychopath or a sociopath could believe he or she knows exactly what the rate should be. I guess that tells you…what kind of people the Elite and its Soldiers are.
You might wonder what all goes into the rate of interest. Well, here the facts.. straight from the book 7 Destructive Economic Illusions Conquered.
“Reality: The market rate of interest consists of three components that correspond to the actual state of reality.
The three components are:
- Time Component
- Risk Component
- Inflation Component (Inflation Premium)
Let’s discover why the Fed denies reality.
First of all, the time component gives information on how people weigh the future against the present. If they prefer to delay consumption and save for the future, the rate of interest tends to fall. If they prefer immediate consumption at the expense of future savings, the rate tends to rise.
The risk component is just that—how risky a loan is. The riskier the loan is, the higher the rate of interest. A relatively safe loan tends to have a low or negligible rate of interest included in its final rate.
An inflation premium is included if lenders and borrowers expect prices to rise. The more they expect prices to increase, the higher the rate of interest. The final rate includes all three components.”
Here’s a question for you. Where are those components located in a rate of interest close to zero?
Are you beginning to see how members of the Elite resort to monetary policies such as Quantitative Easing (QE), Zero Interest Rate Policy (ZIRP) and Negative Interest Rate Policy (NIRP)…to screw you out of your wealth and hard-earned money? These parasites receive the inflationary money first…placing into profitable, unsavory “investments”…leaving you the short-end of the stick.
David Stockman explains “This giant $95 trillion pool is where honest savings from the household and business sectors go to be scalped, appropriated and stolen by the hedge funds, dealers, financial engineers and gamblers which populate the casino. It is the excess girth of it that does the damage, magnifying the rent extraction and dead weight economic costs by orders of magnitude.”
As you can see, Fed policy of lowering the rate of interest to practically 0% is absurd.
Donald Trump on the Fed Policy of ZIRP
“They’re keeping the rates down so that everything else doesn’t go down,” Trump said in response to a reporter’s request to address a potential rate hike by the Federal Reserve in September. “We have a very false economy,” he said.
“At some point the rates are going to have to change. The only thing that is strong is the artificial stock market.”
President-Elect Trump is absolutely right. Does he have the guts to stand up to the Elite’s favorite weapon…the evil, destructive Fed?
Understanding the true definition of inflation explains why we have a false economy…and it’s not an increase in prices. Price inflation results from true inflation.
Inflation is an increase in the quantity of money (money supply)…which results in a drop in the purchasing power of the monetary unit. You receive less for your money. As with deflation, economic calculation is impaired, diminishing the ability of entrepreneurs and capitalists to appraise profits and losses. The larger the increase in the quantity of money, the more it disturbs consumption, investment and production patterns. Inflationary money often tricks entrepreneurs and capitalists into embarking on ventures the marketplace eventually exposes as malinvestments.
Much of the inflationary money found its way into the stock market. How high the Dow Jones, S&P and NASDAQ can go no one knows. We do know all monetary bubbles become overblown…and burst. That’s called the boom-bust cycle of the Fed’s inflationary monetary policy.
Trump Fires Fed Chief Janet Yellen and Vice Chair Stanley Fischer
David Stockman explains how Trump can make a clear demand…that cements his anti-Fed stance.
“It would not be hard to lance the boil and launch on a new path back to capitalist prosperity and economic liberty. President-elect Trump only needs to demand that Janet Yellen and Stanley Fischer, chair and vice chair of the Fed, respectively, have their resignations on his desk by Inauguration Day.”
Step number one requires cleaning out the Fed of all Keynesian economists. Here’s why.
Common sense should tell you that a healthy, growing economy requires more savings and investment per capita. Do you honestly believe an interest rate near 0% encourages people to save money? Unfortunately, a ridiculously low interest rate makes it more attractive for consumers to accelerate consumption at the expense of savings. In addition, we have the spectacle of a Federal Reserve created stock market boom. Of course, Keynesian quackery urges consumers to spend all their money plus money they haven’t earned. And you wonder why the National Debt, including unfunded liabilities, soars every second of the day and now “sits” at over $100 trillion dollars.
Do you see how the application of the monetary theories of John Maynard Keynes proved to be a complete disaster for our economy…and the economy of any nation that practices this quackery.
Fact: Fed Chief Janet Yellen supports hard-core Keynesian solutions to our economic problems. Stanley Fischer has written some intelligent papers…however, he often swims in the Keynesian swamp of illusions.
Possible Solutions to Fed Power
Trump needs to fill the four Fed vacancies with anti-Keynesian advocates of free market finance.
David Stockman states “America’s most insightful and erudite financial intellectual, Jim Grant, 33-year proprietor of Grant’s Interest Rate Observer, would be at the top of the list. His historically rooted understanding of sound money and honest financial markets is emblematic of what we have in mind.”
Well, there’s one sound suggestion for President-Elect Trump. Let’s enthusiastically say “Bye, bye Keynesians…Hello free market supporters.
Let’s reveal the best solution…End the Fed.
“One only needs to reflect on the dramatic decline in the value of the dollar that has taken place since the Fed was established in 1913. The goods and services you could buy for $1.00 in 1913 now cost nearly $21.00. Another way to look at this is from the perspective of the purchasing power of the dollar itself. It has fallen to less than $0.05 of its 1913 value. We might say that the government and its banking cartel have together stolen $0.95 of every dollar as they have pursued a relentlessly inflationary policy.”– Ron Paul, End the Fed.
Given these facts…we can see how the Fed creates one economic disaster after another. It’s time to get rid of the Federal Reserve System…permanently. Does Donald Trump have what it takes to pursue the best course of action? If not…he will end up as a tool of the Elite.
RA Meyer – The Objectivist Warrior Masters the Social Maze