The misnamed Federal Reserve isn’t federal. It’s owned and controlled by major Wall Street banks.
It serves their interests at the expense of sound economic policy, ignoring its congressional mandate to “promote effectively the goals of maximum employment, stable prices, (low inflation), and moderate long term interest rates.”
The Fed transformed monetary policy into a tool for elevating stock prices to more greatly enrich America’s privileged class at the expense of protracted Depression conditions, high unemployment, and far greater underemployment throughout most of the new millennium.
Its mismanagement is greatly exacerbated by the current economic collapse, a likely protracted economic death cycle for most Americans.
Tens of millions are unemployed. Millions with jobs are working reduced hours for poverty-level pay and few or no benefits.
Countless millions lost healthcare coverage at a time when it’s most needed.
GDP, retail sales, industrial production, unemployment, and other economic data plunged to record low levels while food prices are surging — risking a 2nd epidemic of hunger and malnutrition.
Real unemployment isn’t the phony Labor Department’s 14.7%.
When calculated according to its pre-1990 model, it’s 39.6% and rising, according to economist John Williams.
By comparison, unemployment during the depths of the Great Depression was around 25%.
Noted Wall Street analyst Jeremy Grantham earlier slammed what he called “ruinous” Fed policymaking, saying:
“If I were a benevolent dictator, I would strip the Fed of its” wrongheaded policymaking, “limit(ing) its meddling to attempting to manage inflation,” adding:
“I would limit (Fed) activities to making sure that the economy had a suitable amount of liquidity to function normally – a Goldilocks formula, not too hot, not too cold, just right.”
“I would force it to swear off manipulating asset prices through artificially low rates and asymmetric promises of help in tough times” — the so-called Fed put, believing its policymaking will reverse stock prices if fall too far.
The so-called Reagan era-established Plunge Protection Team operates by manipulating stock, bond, commodity, and currency markets.
There’s nothing random about market movements, one of many Wall Street myths.
Grantham also explained that abnormally low interest rates for protracted periods encourage destabilizing speculation,