The Federal Reserve was created in secret by a small cabal of powerful bankers and politicians in 1913. The purpose was supposedly to promote price stability and keep the economy from experiencing dramatic booms and busts. Does this chart portray price stability? We have averaged a boom and bust every 5 to 10 years for the 100 years of the Fed’s existence. The government drones at the BLS tell us that inflation is only 1.13% today. We also know for a fact they have changed the method of calculating CPI since 1980. I wonder why? Maybe because if you calculated it the way you calculated it from 1913 until 1983, you would realize inflation is really 8.81%, on par with the 1970’s. If the BLS reported the real number, even the non-thinking ignorant masses would realize how badly they are being screwed by the banking cabal running this country.

Ask yourself a question. Does losing 95% of your purchasing power over 100 years constitute price stability in your book? The ruling class sure are happy 95% of Americans don’t understand or care about inflation. And now with Common Core, math computations don’t matter, as long as you feel good about your answer. So feel good about having lost 95% of your purchasing power. At least you have that iGadget and Obamacare.


  1. Relax, Stan Fischer is in the wings and will head the Fed by year-end…but I suspect he’s been the key player for a long, long time and the curtain is about to be drawn.

  2. Federal Reserve Statement: Chili Today, Hot Tamale

    The Fed continues to ‘taper’ their purchase of Treasury and Agency debt, but are rolling over all existing securities, which means no reduction in their Balance Sheet, just a slower rate of increase attributable to debt instrument purchases through this program.

    The Fed has softened its economic forecast for 2014 ‘because of the weather,’ and reaffirms its stronger view that 2015 will see something more like a recovery that will permit a relaxation of their accommodative policy.

    Don’t worry we know what we are doing and this is going to work if you give it (more) time, and then it will all be great. Just give us more time, and more time, and more time, and eventually it will all work out. Until then, its chili today, but hot tamale.

    I think that they either do not know what they are doing, or feel too constrained by exogenous factors to actually do what must be done to fix this system. They are, after all, a private entity owned by the Banks, the same Banks that crashed the system in the first place. The Fed is very much in the credibility trap.

    I suspect that the recovery will be in the ever retreating future, if reforms to the financial system are not made, and if government fiscal and political policy does not begin to encourage growth in the median wage.

    This is what it will take to support growth in aggregate demand without distorting consumer balance sheets with unpayable and unsustainable debt once again. But for now they will keep giving money away to the Banks, and hope some of it makes its way to the real economy.

    Chair Yellen will be addressing issues and questions in her press conference.

    Bloomberg has been showing a fairly nice graphic of the Fed’s latest 2014 and 2015 economic projections. I will look for a copy of it and include it later when I find it.

    I am not hopeful for this change at this time. Or any time in the future until something fundamental changes that will allow for meaningful reform.



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