WASHINGTON — “What do the Federal Reserve and neoconservatives have in common? They both refuse to admit that their policies — the neocons’ promotion of perpetual war and the Fed’s manipulation of the money supply — are complete failures, having produced the opposite of the promised results,” wrote Dr. Ron Paul.
President Joe Biden announced on Monday that he was nominating Jerome “Jay” Powell to a second term as the chairman of the Federal Reserve.
The response from the media showed exactly how little they know about monetary and fiscal policy. The focus was primarily on the fact that Powell was President Donald Trump’s pick for the Fed as if that somehow made Powell not aligned to Biden’s agenda. If they actually knew anything, they’d know what a perfect fit Powell, who has written a blank check to the government, is for the bipartisan central planners.
CNN describes Powell as “among the most controversial of any fed chairman” ignoring that Powell has continued the failed quantitative easing and effectively zero interest rate programs of the last few decades. Powell is as arrogant as any Fed chairman, so he fits right in.
A Fox News panel suggested that Powell hasn’t acted strong enough to combat the current “inflation” crisis we’re facing when in fact it is the Fed’s actions that are causing the high prices.
“A lot of people were surprised, perhaps, and probably relieved as well because with Biden you don’t know what kind of a lulu he might nominate to an important job like that,” Britt Hume said. “And I think a lot of people thought that Jay Powell had done well. He responded promptly and forcefully when the economy started to crater in the COVID shutdowns and the pandemic, flooding the economy with cash.”
Right there tells us how uneducated our media class is. That “prompt” and “forceful” action is not only what is causing our higher prices right now, it’s what has paid off the tyrants to keep the tyranny going.
Juan Williams, on the panel, made one honest statement. Powell is the “mainstream, status quo.” The problems in our economy will persist.
Before I go further, it’s important to get a definition correct. Inflation is not higher prices, it’s an increase in the money supply. Higher prices are the consequences of the inflation. In 1913, Webster’s Dictionary defined it as an “undue expansion or increase, from overissue… of currency.” Prices had nothing to do with the definition. Even when it entered into the definition, in the 1970’s, it was only listed as a consequence with the definition stating a “sharp increase in amount of money and credit causing advances in the price level.”
Of course, would you expect the media to get definitions correct? They claim inflation is good. That’s true, by the way, for the elites who are increasing the money supply, but it’s not good for the rest of us.
“In fact, a lot of people who are rich end up benefitting from inflation because inflation also pushes up the value of assets that a lot of rich people own,” said economist Peter Schiff. “But unfortunately, a lot of middle-class Americans don’t own those assets. They just get stuck with the bill. They earn wages, but their wages don’t rise nearly as much as the cost of living. And so, even though they get a bigger paycheck, they’re actually earning less, because when they go to spend those dollars, they can’t buy nearly as much stuff.”
Back to Powell, who apparently is not a “lulu” according to Hume, he literally said that money printing is not inflation, despite money printing literally being inflation.
“So, according to Powell, the law of supply and demand no longer applies,” Schiff said. “We can supply as many dollars as we want and the price of the dollar is not going to fall. I mean, that is absurd in its face.”
Schiff added: “Now, has the dollar crashed yet? No. Not yet. Because of the incorrect perception of the dollar as a safe haven because the dollar is the world’s reserve currency. And so, we’ve been given a lot of slack and you have a lot of people around the world who have loaded up on dollars. And because the Fed was successful in conning all these dollar holders that the short-term zero percent interest rates and the bloated balance sheet were temporary — that the Fed was going to normalize interest rates and shrink its balance sheet. And that is what enabled the Fed to keep on printing money without the value of that money collapsing because our creditors were willing to hold on to that money because they were anticipating this rate normalization, which was going to be bullish for the dollar.”
Powell has also pushed every woke agenda item from using the Fed to push the “green” agenda to “racial justice.” So why is anyone surprised by this pick?
“The use of the woke agenda as an excuse to further politicize the allocation of capital and continue to expand the Fed’s easy money, low interest rate policy will hasten and deepen the next economic crisis,” Paul wrote. “This crisis will either be precipitated by or result in the rejection of the dollar’s world reserve currency status. It will also likely result in the collapse of the entire Keynesian welfare-warfare system. Unfortunately, there is a likelihood that the current system will be replaced with a government even more authoritarian than the current one. But, if those of us who know the truth can educate enough people about liberty, we can make sure the next economic crisis leads to a rebirth of limited government, free markets, and individual liberty.”
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