Timothy Birdnow

Here is a good essay about the Federal Reserve and what most Americans do not know about it.

He's right, and when Rand Paul said the Fed was more powerful than Congress he wasn't kidding. Oh, and it's dominated by the New York banks and Wall Street, which is why stocks always seem to prosper when middle America is hurting.

We went down this road before. Alexander Hamilton's brainchild was the Bank of the United States, and that institution was hated by many, especially in frontier areas which suffered from BUS policy. Andrew Jackson, the Trump of the 19th century, wanted to kill it. Well, the head of the BUS was a creep named Nicholas Biddle who purposely tried to strangle the economy, jacking interest rates through the roof to get Jackson kicked out of office. It didn't work and Jackson finally took the corrupt institution out. America did fine with no central bank but we imposed it in 1913 under the proto-fascist Woodrow Wilson. We've been stuck with these mandarins of the economy ruling us ever since.

And what has been their legacy? We had a terrible depression in 1022, and an even worse one 1929 that lasted through to the American entry into WWII. We haed the "Depression within a Depression". We've had multiple terrible "recessions" which is what they call depressions now (for psychological reasons). The terrible recession of 1982 was triggererd by the Fed pumping up the money supply, leaeding to runaway inflation, then imposing high interest rates - giving us stagflation, something Keynsian economists said was impossible. They then cut both and Ronald Reagan faced one of the nastiest recessions we've seen.

But his policies got us out of it.

At any rate, the Fed giveth and the Fed taketh away.

I suspect they are going to really crack down with Trump in office so as to make America believe they made the wrong choice. If the Fed crushes the economy while Trump is President there is a real chance the internationalists and communists will retake power and MaGA will go the way of the Dodo.

Granted, Trump's policies should unleashe prosperity, but the Fed is going to resist him. That is my prediction anyway.

Congress created that monstrousity. Congress needs to undo it.

People used to hate bankers because so many of them were crooks and folks lost their property to banks, or their deposits, all the time. So what did Congress do to fix it? Gave the bankers almost total power over the economy. Sadly most people don't understand that and think the Fed is somehow their protector FROM bankers and other plutocrats. it isn't; it's what is giving us a plutocracy in the first place.

I hope Trump takes a page from Andrew Jackson.

Posted by: Timothy Birdnow at 08:12 AM | No Comments | Add Comment
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