The Mendacity of the Fed and the Ruination of Capitalism

American Thinker ^ | James Longstreet

[markomalley]

David Stockman tells it like it is.  In his interview and from his articles posted on his website, “Contra Corner”, Mr. Stockman gives the cold hard and politically incorrect version of what the Federal Reserve is up to in all its misdirected glory and auto-assumed powers.

“The Fed runs everything; it has pegged, manipulated, medicated and manhandled the entire financial system. There is not an honest interest rate left…..A Regime of crony capitalism, for both sides… using the tools of the State the budget and the central bank…to accomplish ends that would not be remotely feasible, reasonable or likely in a free market.”  So says Mr. Stockman. “The Federal Reserve has taken over and runs the GDP.”

Mr. Stockman opines:

“Even in those halcyon days of Keynesianism, few in Congress believed that they had mandated the Fed to pursue rigid quantitative targets for inflation and unemployment—let alone precisely a 2% annual gain in the PCE less food and energy or 6.5% on the U-3 measure of unemployment, which didn’t even exist then…And most certainly, the Congressional majority that passed the act (Humphrey Hawkins) did not in its wildest imagination foresee that the route to the quantitative inflation and unemployment targets it didn’t mandate would be through the canyons of Wall Street and the made-up monetary doctrine of “wealth effects” as the surest route to their achievement.”

Describing the ill effects of this Federal Reserve overreach:

“The business sector debt stood at about $11 trillion on the eve of the 2008 crisis, and has now vaulted upward to $13.5 trillion. Yet nearly the entire gain has gone into the preferred financial engineering games of bubble finance -- namely, LBOs, (leveraged buyouts)  cash M&A (mergers and acquisitions) deals and stock buybacks…

[Olog-hai]

Calling the Fed “Fedzilla” is an insult to the Kaijū from which that name is derived. That micromanaging mess almost single-handedly destroyed the dollar’s value and added nothing. The only reason for its existence was to expand government control.

[SkyPilot]

And he could add 'Your IRA and 401K is an illusion, held together by a Fed pumped and manipulated stock market that is destined to crash - hard.'

[Mycroft Holmes]

Thanks for the cool new word. From the wiki:

Chow for paragraph eater.

Kaiju (怪獣 kaijū?) is a Japanese word that literally translates to "strange creature." The word has been translated and defined in English as "monster" and is used to refer to a genre of tokusatsu entertainment. Kaiju films usually showcase monsters of any form attacking a major Japanese city or engaging another (or multiple) monsters in battle.

Fight the Free Sh☭t Nation

[MHGinTN]

Fascism by Fed

[expat_panama]

“The Fed runs everything; it has pegged, manipulated, medicated and manhandled the entire financial system..."

--and all this time I thought the world was being taken over by the evil purple tentacle...