Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20
Gold Gann Angle Update - 10th Jan 20
Gold In Rally Mode Suggests Commitment of Traders (COT) Data - 10th Jan 20
Disney Could Mount Its Biggest Rally in 2020 - 10th Jan 20
How on Earth Can Gold Decline During the U.S. – Iran Crisis? - 10th Jan 20
Getting Your HR Budget in Line - 10th Jan 20
The Fed Protects Gamblers at the Expense of the Economy - 9th Jan 20
Last Chance to Get Microsoft Windows 10 for FREE! - 9th Jan 20
The Stock Market is the Opiate of the Masses - 9th Jan 20
Is The Energy Sector Setting Up Another Great Entry? - 9th Jan 20
The Fed Is Creating a Monster Bubble - 9th Jan 20
If History Repeats, Video Game Stocks Could Soar 600%+ - 9th Jan 20
What to Know Before Buying a Land Rover Discovery Sport in 2020 - 8th Jan 20
Stock Market Forecast 2020 Trend Analysis - 8th Jan 20
Gold Price at Resistance - 8th Jan 20
The Fed Has Quietly Started QE4 - 8th Jan 20
NASDAQ Set to Fall 1000pts Early 2020, and What it Means for Gold Price - 8th Jan 20
Gold 2020 - Financial Analysts and Major Financial Institutions Outlook - 8th Jan 20
Stock Market Trend Review - 8th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

End of the Fed: It Can’t Do Any of the Things It’s Supposed to Do

Interest-Rates / US Federal Reserve Bank Feb 05, 2016 - 06:55 AM GMT

By: Jeff_Berwick


[The following is by TDV’s Senior Analyst, Ed Bugos]

Janet Yellen has been in the news with her often-stated determination to create price inflation.

Why Fed officials are so scared to death of the deflation we all look for at the shopping mall each weekend is anybody’s guess. Ours is that it keeps the crony banking system and its inflated bureaucracy afloat – on a sea of green, like in a yellow submarine.

But it doesn’t really matter. The Fed can’t do what Congress has decided it needs to do, anyway. That’s because the Fed is a state-empowered monopoly. And its dictates amount to price fixing, which never works.

And as people wake up to this reality, the credibility of the Fed continues to erode.  This is the central bank’s most pressing current issue. Let’s examine it further.

The Fed is subject to two legislative priorities. One is to generate price stability and the other is create”maximum employment.”

Price stability is not only impossible to achieve but not even desirable in a capitalist (free market) order. The price system is like a navigation tool and a feedback mechanism at the same time. It provides information and incentive.

What’s important is that when something changes, prices change to reflect it.

What the academics really mean is they want the Fed to avoid too much inflation or too much deflation in the price level. But they treat this as if the source of such deviations were everything other than their own actions. Even Milton Friedman, the economist who wove the academic cloak that Fed officials hide behind, knew that inflation and deflation were “always and everywhere” monetary phenomena.

The Fed’s objectives are a ruse: an intellectual cover: a lie! They exist to obscure the true objective of the Fed, which is to insure the current, corrupt banking order, and finance an insanely burgeoning bureaucracy.

Back in 2009, when markets were declining by 50 percent, Ben Bernanke supposedly sent US$15 trillion to banks around the world.

This was illegal, as the Fed is a domestic entity. That money was disbursed as short term loans and supposedly little of it has come back.

That tells you all you need to know about the REAL purpose of the Fed. The Fed is intended to support and manage a worldwide banking cartel, using resources it syphons from taxpayers and savers.

There are anti-monopoly laws on the books around the world. Yet the “central” banks are exempt from such legislation. Central banks are SUPPOSED to work with other central banks, guided and harmonized by the incredibly powerful and secret Bank for International Settlements located in Switzerland (long ago created by Morgan and his British banking friends). Having monopoly central banks around the world coordinate their destructive money production helps nobody except a handful of impossibly wealthy bankers and elites.

The primary purpose of the modern central banking system is to centralize power and control.  If you want to understand what it really is and what its purpose is (hint: it’s not good for you) watch this:

Since central banks are extra market forces, unresponsive to prices, their interventions in the interest rate can’t be sustained. But the frequent collapses they engender are never wasted, always justifying the further accumulation of power by a few who are devoted to the continual globalization of finance. You see,  they win when they’re inflating the boom and they win when it collapses. It’s a win, win… for them.

The current role of central banks is obscured by a deluge of propaganda, because if what central banks REALLY did were clear, people would ensure their destruction.

But on any level central banking makes little sense. If the market can’t support an industry then it should die. If society needs banks and bankers’ money, they can survive without the government’s help. This kind of thinking is revolutionary. I know.  But that’s just what we do here at The Dollar Vigilante.  But therein also lies another very important objective of central banking: to help the fractional reserve banks expand credit and their assets infinitely. Only, this mode of expansion is self serving; it does not add to the wealth of the society, but only redistributes it. The fact is that the banks and government are insolvent. And as ruin spreads, so does the modern blight of authoritarian globalization.

There is only one thing that can check this trend. That’s the competition of the free market. Take away legal tender monopoly. Reduce the scope of the powers of the regulatory bodies or, even better, eliminate them altogether.

Most people understand the banks are doing something nefarious today. But their naive belief in government prevents them from seeing that the banks could not do what they do without the government.

Someday people will see the system for what it is.  We won’t stop until they do. They will recognize the wizards “behind the curtain” and realize that the wizards have only contempt for them and intend to ruin them. That is the day the Fed will cease to concern itself with price stability and growth – because the Fed will cease to exist. And that will be the first really good news for price stability and growth since the Fed was founded a century ago.

In fact, the Fed and other central banks are under increasing attack because of their abysmal performance and its exposure on the internet. The world’s financial system is in a state of considerable flux as a result.

This is one of the most important issues facing investors today and it is one that will receive a good deal of attention at our upcoming investment summit in Acapulco, Mexico on February 18th.

I’ll be there and I urge you to join me. Please make your reservation HERE.  It is nearly sold out now so I hope you can make it.

And once you’ve signed up for the Summit, you’ll want to stay for the anarcho-capitalist, three-day Anarchapulco freedom fest. I’ll be there for that as well.

Never has the world’s financial system been so fraught and never has the future seemed so doubtful. All these issues will receive a thorough going-over at our investment summit. Please come lend your voice to our discussion – for the sake of your own prosperity and your family’s and friends. I hope to see you there.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2016 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules