The economy may seem to have recovered, but the recovery is not built on a firm foundation. Instead it rests on Fed-created bubbles in areas such as automobile sales, credit cards debt, student loan debt, stocks, and even a new housing bubble.
The most dangerous bubble is the government debt bubble. The Fed facilitates deficit spending by monetizing the federal debt. The desire to enable Congress’ spending addiction is a major reason why the Fed cannot significantly raise interest rates, as increasing rates could increase federal debt payments to unsustainable levels. This may be one reason why President Trump has reversed course and endorsed low interest rates. Of course, all first-term presidents want low interest rates since they believe the low rates boost the economy and thus help them win reelection.
One of the issues Powell will face is increasing challenges to the dollar’s world reserve currency status. China is pressuring Saudi Arabia to price oil in Chinese yuan instead of in American dollars. China and other countries may take other steps, such as halting purchases of Treasury bonds, that could weaken the dollar. The threats to the dollar’s world reserve currency status will increase as concerns about US government and private sector debt, as well as resentment over US militarism and protectionism, grow.
The dollar still maintains its reserve currency status not because the dollar is strong, but because other countries’ currencies are weak. However, unless the US gets its economic house in order, that may not long be the case.
A new challenge to the dollar’s status is emerging from the private sector as more individuals seek alternatives to government-created fiat currency. The dramatic increase in the value of bitcoins may very well be another Fed-created bubble, but it is one fueled in part by desire to be free of the Fed’s ever-depreciating paper dollars.
Another sign of the people’s rejection of the Fed is the passage of state laws recognizing gold and silver as legal tender. Arizona passed such a law last year and Wyoming will soon consider a similar bill. As the failure of our current system becomes more apparent, more states will give their citizens freedom from the Fed’s money monopoly.
Much to new Fed Chairman Powell’s chagrin, support for the Audit the Fed bill remains high. As knowledge of how the Fed endangers prosperity grows, the pressure on Congress to pass Audit the Fed will prove irresistible.
Jerome Powell may seem to be assuming the Fed chairmanship at a time of Increasing prosperity and renewed respect for the Fed. However, the prosperity is an illusion built on a series of Fed-created bubbles whose bursting will cause a major economic downturn. This will increase both the growing challenges to the dollar’s world reserve currency status and the number of people seeking alternatives to Federal Reserve-created fiat currency. Powell could be the last Fed chairman if the next Fed-created economic crisis leads the people to force Congress to audit and then end the Fed.
End the Fed……….
How would that work, specifically and in detail.
End the Fed? Bwahaha, might as well smoke crack.
Did I say we SHOULDN’T end the Fed? No, I am saying good luck with that.
The powers that own the Fed will probably start another world war before giving up their Control of our currency.They are not going to just allow us to be free from their Control.
Then let their children and grandchildren fight that war alone.
The draft violates the 13th amendment. It is a form of slavery.
Jerome Powell is another member of the Rockefeller Council on Foreign Relations (CFR), along with Janet Yellen, Alan Greenspan and Paul Volcker. Citigroup, JPMorgan and Goldman Sachs are CFR “founding sponsors” and several of their execs are also CFR members (Blankfein, Dimon, Rubin, Summers, etc).
The CFR and its many affiliates have been referred to as the “invisible government”. Since WW2, most of the Fed chairmen and the Secretaries of State, Treasury, Defense and CIA have been CFR members.
See the lists of directors, members and sponsors in the CFR annual report, starting on pg 36:
https://www.cfr.org/sites/default/files/report_pdf/AR2016_web.pdf
But, but, but, he’s CATHOLIC
First we need to #ArrestTheFed and find out how they have been robbing us blind. From The Critical Post Chicago (White Hats Report) is this report
on how the world wide banking institutions (including the FED) have sucked up 95% of the retail bond market proceeds before they hit the market through their trading programs.
A document dump will be coming out on Tuesday or Wednesday of this week, covering this situation.
Here is the first document drop from The White Hats Report http://whitehatsreport.com/2018/01/24/1400/ and it is very informative.
Time to #ARRESTtheFED
It would take volumes of blood to flush the Fed. BB and Wip got it right.
I think it will take more volumes of blood if we don’t flush them.
Andrea,
Or Goldwater would have won the Vietnam War…or South Vietnam would exist today as does South Korea. I don’t think he would have triggered WW3…but many feared he would have dropped one in the Kremlin Men’s room?
But in light of the national sympathy for JFK the fifth term of FDR had it in the bag in 64.
I was 14, Goldwater inspired my budding political policy wonk passion then and still does to this day.
In hindsight Goldwater’s books: “Conscience of a Conservative” and “Conscience of a Majority were prophetic.
The dollar is not linked to oil. It is linked to the US military.
I’ve never heard anyone suggest that but it makes sense.
At some time the check will bounce? No. Really?
Whenever I show my students Ron Paul videos, they say he should’ve been President.
And, that’s with no propaganda on my part. They just think he’s smarter than any politician they’ve seen.
The dollar is solid. As long as the American people support it, it will not fail. Maybe our imports will; but not the dollar. People who don’t understand the function of the dollar look at it as some form of value. The value of the dollar is in facilitating trade; that is it’s intrinsic worth. We can trade with anyone using the dollar. This is it’s worth.