This article was originally published by Ron Paul at The Ron Paul Institute for Peace and Prosperity.
Federal Reserve Chair Jerome Powell and San Francisco Fed President Mary Daly both recently denied that the Federal Reserve’s policies create economic inequality. Unfortunately for Powell, Daly, and other Fed promoters, a cursory look at the Fed’s operations shows that the central bank is the leading cause of economic inequality.
The Federal Reserve manipulates the money supply by buying and selling government securities. This means that when the Fed decides to pump money into the economy, it does so by putting it in the pockets of wealthy, and oftentimes politically-connected, investors who are able to spend the new money before the Fed’s actions result in widespread inflation. Wealthy individuals also tend to be among the first to invest in the bubbles that form when the Fed distorts interest rates, which are the price of money. These investors may lose some money when the bubble bursts, but these losses are usually outweighed by their gains, so they end up profiting from the Fed-created boom-bubble-bust cycle.
In contrast, middle-class Americans lose jobs as well as savings, houses, and other assets when bubbles burst. They will also not benefit as much as the rich and well-connected from government bailouts and stimulus schemes. Middle- and working-class Americans also suffer from a steady erosion of their standard of living because of the Fed’s devaluation of the currency. This is the reason why so many Americans rely on credit cards to cover routine expenses. The Federal Reserve is thus the reason why total US credit card debt is almost one trillion dollars.
Big-spending politicians are also beneficiaries of the fiat money system. The Fed’s purchases of US debt enable Congress to massively increase welfare and warfare spending without increasing taxes to politically unacceptable levels. The people pay for the welfare-warfare state via the Fed’s hidden and regressive inflation tax.
Low interest rates also benefit politicians by keeping the federal government’s interest payments low. This is an unstated reason why the Fed will keep interest rates near zero or even lower interest rates below zero.
In response to the government-caused economic collapse, the Federal Reserve increased the money supply by about a trillion dollars from mid-April to early June. In contrast, it took the Fed all of 2019 to grow the money supply by 921 billion dollars. Even before the lockdown, the Fed was massively intervening in the economy in a futile attempt to prevent an economic crisis.
A coming crisis will likely be triggered by a collapse in the dollar’s value and a rejection of the dollar’s world reserve currency status. The economic collapse will be worse than the Great Depression. This will result in widespread violence along with government crackdowns on liberties, accelerating the US slide into authoritarianism. The only way to avoid this is for Congress to make drastic cuts in spending — starting with defunding the military-industrial complex — and to audit then end the Fed.
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paraphrased —
‘The only way to avoid (an excess of worthless arcade tokens) is for Congress to (cause austerity, or poverty, artificially)’.
While I would generally prefer to be fit as possible, “work” is for suckers — trying to keep up with totally fake booms and busts, by the ultimately limited strength of your back.
“the Fed’s operations shows that the central bank is the leading cause of economic inequality.”
In other words, your workplace exists solely as a political appointment.
If I could go back in time, to indoctrinate my younger self, I would say that a work ethic is only for myself, in the smaller picture.
Our economy is not capitalistic, in the sense that capital is the material means of production.
Rather, it is virtual and speculative, in the sense of Marxian economic crises and the theory of rent.
Why people can not understand the logic of Dr. Paul’s article and prepare accordingly is beyond me.
Ron Paul, ECONOMIC INEQUALITY is mentioned twice in your initial paragraph. As a Libertarian you know that ECONOMIC INEQUALITY is not a reasonable goal. Some people are wasteful, some are too lazy to work, some make very bad investment decisions, etc. If you did an experiment in which all test subjects began with EXACTLY the same assets, you know that before long some people would have less & some people would have more.
The American experiment was for CITIZENS to have EQUAL OPPORTUNITY, EQUAL JUSTICE, & GENERAL EQUALITY. Please don’t buy into the communist fairy tale of equal results. Those ideas are for the historically-ignorant folks.
Dog gone spell check. The second usage of “Economic INEQUALITY” in my post is supposed to be “Economic Equality”. Sorry, I did NOT catch the error.
cranerigger, I don’t disagree with your logic and economic theory at all but what i took away from Dr. Paul’s meaning of “ECONOMIC INEQUALITY” was that the fed was giving to some and not to others, namely the less equal animals on the farm.
Most of the money supply growth prior to the bail outs occured in time deposits, and money that is unavailable to the average person or business. It was not actually a growth but a recalculation, when money vacated the stock market. The time deposits grew, but the money supply did not grow much, but had appeared to when the transfer from stocks to time deposits occurred. That is the fractional reserve system on display, as well as the frequent economic collapses that it and compounded interest create.
Andrea Iravani
Is there enough wealth left to give away?
Preplanned INTENTIONAL destruction of our Great Nation.
Did you know?
Apple –Steve Jobs did Not allow his children to use I-pads.
Steve Jobs belief, “The tech is addictive and stunts creativity/ brain development”. “Destroys critical thinking.”
The powers that be are Training your children to become violent, burn, loot, and to Murder.
FACT: Video games are Murder training Simulation.
In the dark ages, I worked on one of first DOD training simulators that was used to train military, to have faster reaction times/to make a soldier kill without hesitation.
Guess what? The video games were proven Effective at Both Objectives.
– Increased Faster reaction time to a percieved threat.
– Lowered hesitation to kill. “Kill Kill Kill. Over and over Kill Kill Kill.” That was a verifiable result.
You allow your impressionable children to zone out for HOURS on video games that REWARD killing, maiming, murdering. These current video game are much more sophesticated/realistic, than the equipment we trained soldiers on.
These are NOT “just games”. Your young peoples brains are being Wired to kill and to become antisocial criminals.
Why can’t you understand this fact?
You wonder why young people are burning your cities and killing each other? Guns are Not the problem. As a young man, ALL of my friends had guns. Most of us kept guns in our bedrooms at home.
In my High School nearly every pickup truck had a gun rack with guns in them. And yes, there were many fist fights. Yes, people got jealous over girls. Yes, people got angry at group of other people. NOT ONE GUN was misused by Anyone. Never. Not one shooting. Nearly everyone had a gun either at home, in their truck. Not one shooting. Everyone also carried a knife. No knife fights occured.
(The only stabbings were done by the illegal mexicans. No Americans in the school were involved in a stabbing.)
Why? Why was it so different then? Why so violent and insane now?
1. This was before violent video games where young people are rewarded in the games for killing.
NOTE: *** Video games where your children spend, hours, days, weeks, months, years, practicing and being rewarded for killing and other violent/antisocial acts.
2. Most of us also had Fathers at home. We were not afraid of teachers, Officials/Police, if a weapon was used.
But the “old man” at home scared the hell out of us. He would beat the hell out of us if we got stupid. And No, we would have not have fought back. “Because you don’t raise a hand against your father.” And no “official” would have been called if we showed up battered and bruised at school. Not like the meddeling “officials” today.
– Video game murder simulation is problem. Children don’t see difference in real or play violence.
– No fathers to guide natural male agression. This society and the brainwashed permiscuous “modern” females Destroy families.
– No consequences to criminal activity. Politicians and Police ALLOW and encourage criminal activity disguised as so called “protest”.
– Media is attempting a communist inserection. Media is a real problem. Why isn’t inciting violence against Police and burning cities ALLOWED. Arrest the media.
The truth is now verbotten.
Truth is banned.
Truth is censored.
Truth is not “political correct.” (By the way that term is not American it is communist.)
Truth no longer permitted.
Only the Tech Monopoly leftie commie pro NWO globalist view permitted.
Piss on you politicians.
Piss on you liar Media brainwash trouble makers.
Piss on you political correct weenies. No NFL, NBA, or NASCAR allowed in my household. You people want to politic for Anti-Americans. Piss on you.
Piss on your “new normal”.
And piss on you cowards that allow this Insanity.
One day maybe people will wise up and take down your “change.”
Politicians-Bankers-Entertainment Industry-Media, they are destroying your country. They are the enemy. And you do Nothing.
If you Keep following Media and Politicians,
Act like a dumbed down, domesticated, castrated, herd following head of livestock. And you Will be Slaughtered.
Just go along with the dumb herd social media animal mob and follow into the kill shoot and allow the spike to be driven into your head until Lights Out.
Because that is EXACTLY where you are heading as a society and so called “culture”.
Stop following herd blindly or Lights Out.
The same screens can be used to teach primitive skills or high culture, if not to radicalize useful idiots.
It’s actually our own fault, if we never technically have to be hungry, in pain, or bored, and we still end up fat, addicted, and spoiled.
Nail on the head “U R Under Attack”. Col. Dave Grossman wrote extensively on what you are talking about in a book called “On Killing.” Highly recommend for anyone with kids who wants to understand what these games do to kids and adults. We have a generation of snowflakes that once they get over their irrational fear of picking up an actual gun will be already programmed for terrible violence.
Useful Info that will help You:
Here is a video resource on
** YouTube:
** Search Title: “Dave Grossman: “Bulletproof Mind”‘
You should watch it before the AntiAmerican, pro censorship, chicom boot lickers, control freak censors, remove the information. Truth no longer allowed.
Rant of the day:
Had the privilge of presentation by Col. Dave Grossman. I don’t agree with everything he says.
But he did keep us Alive and well. His info is Priceless. Highly recommend his books and that shtfplan family looks him up.
I’ve not read his latest. (Been too busy with chores. Preparing to escape the boot of the comrade Tyrant rino governor of Tx, comrade King Abbott.)
* I will Not follow orders.
* I will Not wear a face diaper.
* I will Never submit to Evil Occult practices like chicom mask wearing, 6ft distancing.
* I WILL EARN a living for my family. I do NOT need the comrade self appointed King Abbotts permission.
* I WILL gather with freinds and family to worship God. I will NOT allow any politicians orders to prevent my inalienable rights.
This ChiCom plandemic is an attempted globalist-communist-coup of American Way of Life. FIGHT the Face Diaper commies.
Commie NWO globalist are ATTACKING your family, right to earn a living, right to gather and worship Jesus Christ. They are forcing you to wear chicom occult “mask of submission” to purchase food for your family.
Prepare. Refuse to submit to the Beast System.
We will remain in Texas long enough to cast a vote for ANYONE that runs against comrade King governor Abbott.
Live Free or Die Free. Freedom is number 1 above all else,to be free you need the essentials to stay free. Live Free or Die Free. I’m in. Elbulleheal
correction of above typo:
– “Media is attempting a communist/globalist/NWO Insurrection. Media is a real problem. Why is inciting violence against Police and burning cities being ALLOWED. Arrest the media.” Arrest politicians for allowing riots.
The media are screaming “fire” in a crowded space?
THIS IS A CRIME. Why are leftie/commie/Anti-American Media allowed to do this criminal act without consequences. Why?
Why doesn’t the US constitution matter anymore?
Why can a governor lockdown an economy with rubber band science and bad/falsified data sets as excuse?
Keep your face diaper.
Keep your vaccine bio chips.
Keep your 5g radiation. (Chicom flu is cover for 5g deaths?)
You people are insane. Really insane. Insane people are dangerous. “Stay away from insane dangerous people.”
So I’m leaving.. Your “new normal” will NEVER be my normal.
WE WILL NEVER SUBMIT TO BEAST OCCULT SYSTEM.
Neither should you.
But you face diaper wearing social media mob goons that ban/censor all truth will fall for any idiotic nonsense. so censor that. redlist that. ban that. come and take it.
Well if that’s the case then every last politician including Trump is behind the sedition and treason because they allow the law breaking by media and others.