The Federal Reserve Wants You Fired

Guest Post by Ron Paul

The Federal Reserve was no doubt troubled by July’s decline in the US unemployment rate to 3.5 percent and increase in job openings to 11.2 million. This is because the Fed’s strategy for reducing the historic price inflation now plaguing the economy — caused by the Fed’s unprecedented low or zero interest rate policies — is to increase unemployment in order to decrease consumer spending. In his speech to the annual monetary policy conference in Jackson Hole, Wyoming, Fed Chair Jerome Powell reiterated his commitment to increasing unemployment, or, as he puts it, “softening the labor markets.”

Powell is correct that reducing price inflation is urgent. He is also correct that doing so will increase unemployment and slow economic growth. The Fed’s efforts to bring down inflation by increasing interest rates will also make it harder for average Americans to obtain home mortgages, purchase a car, or even pay their utility bills. Those hardest hit by the Fed’s “softening of labor markets” are also the primary victims of the Fed-created price inflation. This demonstrates the insanity and cruelty of the fiat money system, which enriches the elites while improvising the masses.

Well-connected members of the financial elite and crony capitalists benefit from the Federal Reserve’s money creation, as they are the first recipients of the new money. This enables them to increase their purchasing power before the new money has caused general price inflation. By the time the money creation has impacted the middle and working classes, the economy is racked with widespread price inflation. Therefore, a nominal gain in wages is not enough to compensate for the real price increase. So average Americans suffer from both Fed-created inflation and the Fed’s attempts to rein in that inflation.

It is amazing that more individuals do not question the idea that inflation, recessions, unemployment, and booms and busts are necessary features of a sound monetary system. Even many otherwise staunch defenders of free markets maintain a child-like faith in central banking. Some conservatives support “reforming” the Fed by making it follow a “rules-based” monetary policy. These conservatives do not understand that the problem is the existence of a central bank with the power to manipulate the currency.

Many progressives recognize the damage the Fed does to average Americans when it increases interest rates. However, their “solution” is a cure worse than the disease: make the Fed maintain low interest rates (and thus high inflation) in perpetuity—or until the continued devaluation of the currency via inflation causes a dollar crisis, leading to a major economic calamity. The main victims of this crisis will, of course, be the very Americans progressives claim to care about.

The Federal Reserve’s failure to fulfill its dual mandate of producing stable prices and full employment, combined with the damage it inflicts on the American people, make the best case for changing our monetary policy. A stable currency, safe from manipulation by politicians or central bankers, would provide the basis for long term prosperity that benefits everyone, not just the crony capitalists and the power-hungry politicians. The first steps in this transition are to finally pass audit the Fed legislation and continue the efforts to pass state laws recognizing precious metals as legal tender.

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Anonymous
Anonymous

Prepare.
With all important resources deemed critical, establish a plan, and add a contingency plan B as a viable option alternative.

With preparation due diligence comes a more confident state of mind.

Simplify.

Putin it where it counts
Putin it where it counts

raise taxes and cut spending to reduce the money supply

Iska Waran
Iska Waran

A serious slowdown in the housing market is just beginning.

olde reb
olde reb

Powell is doing whatever is necessary to destroy the global economy so the IMF [read Wall Street] can foreclose on the 86 loans they made for covid relief within hours of the pandemic announcement.

Harrington Richardson
Harrington Richardson

“Softening the labor markets.” Another hit from the euphemism factory. Greenspan still has the best ever: “Eliminating the concentration of distribution.” That was in response to skilled labor commanding skilled wages. He wanted to bring in fuqueing Indian tool and die makers and truck drivers on two year special visas to take skilled labor down to $10 per hour. At least that had a specific target and goal. This incompetent shithead Powell is saying he wants destruction of us little people to save the asses of incompetent or overzealously greedy important people the tide is about to expose as swimming naked.
What would work? Bankruptcy with all the assets of these asshats auctioned by the court. Once again they will attempt to not only protect, but try to make whole only those who caused the problem on the backs of everyone else.
End the FED and reenact the Currency Act of 1792.

AKJohn
AKJohn

And thus, the term Global Banksters was born.

Llpoh
Llpoh

People should forget about the “unemployment rate” as it is total fucking bullshit.

The real unemployment rate is around 40%. That is the percentage of working age adults that are not working. That figure includes all the welfare types that don’t want jobs, so who aren’t counted as unemployed.

The participation rate is around 60%. It needs to be 70+%. Or even higher. The only people who shouldn’t be working are married women with children, the self-funded retirees or non-working (certainly not govt retirees who retire at 50, which never should have been, or be, allowed.), or the entirely disabled. Everyone else should be at work. The welfare system has been a major part of the disaster that is unfolding.

GNL
GNL

Did you say the “non-working” should be included in the list of people you said shouldn’t be working?

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