Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How the Fed Gets Away With Ripping Off Ordinary Americans

Politics / US Federal Reserve Bank Jul 03, 2020 - 03:49 PM GMT

By: MoneyMetals

Politics

The Federal Reserve has printed trillions of dollars without generating runaway price inflation through the use of a neat trick.

The privately owned bank cartel shovels the bulk of the money to Wall Street banks and not to the public at large. Instead of millions of Americans rushing out to bid up prices on consumer goods, a relative handful of bankers is using the free money to bid up asset prices and then pay themselves huge performance bonuses.

It’s quite the racket. Fed officials have been able to point at stock prices as “proof” of how they successfully engineered an economic recovery.


Wall Street is the true beneficiary of all the largesse and Main Street doesn’t ask too many questions as long as the stock market is roaring higher.

Things have to be good, right?

Except now Americans noticing that Fed policy is horribly unfair. The distribution of recent stimulus funds from the Fed and Congress is so lopsided it’s outrageous. Politicians printed and borrowed roughly $6 trillion - the equivalent of $30,000 for every adult in the US.

How much of that cash did people actually see? About $1,200 if they were eligible for assistance.

And since Congress borrowed 100% of those funds, Americans are expected to pay it back. They’ll have to add it to their tab.

The pro-rata portion of the U.S. debt for each adult is already more than $110,000.

The trillions the Fed created were injected to buy Treasuries, lend into the repo markets and to make bond purchases. In theory, these funds will have to be paid back too. Since the Fed is never audited and doesn’t have to provide detail on Fed loans, we have to take their word for it.

We aren’t the only ones covering the ridiculous gap between what the Fed and Congress will spend to support bankers versus the rest of us. Wall Street on Parade has been watching the malfeasance for years.

The misnamed CARES Act passed by Congress in March authorized billions of dollars for small businesses. However, some of that was siphoned off by banks, including a New Jersey bank which collected $5.3 billion.

Larger, publicly traded companies with less need for emergency funding have also been cashing in on the program.

Bloomberg reports that two-thirds of the $3 trillion in stimulus money approved by Congress has been spent.

Those funds have been handed out with practically no oversight.

Fraud and mismanagement should be expected whenever Congress passes a massive spending program. If the spending program is rushed through with plenty of political cover, like the CARES act, it will be a bonanza for grifters, the special interests, and the well-connected.

Unfortunately, there isn’t much that frustrated Americans can do about it. Almost everyone in Washington (in both parties) supports what Fed and Congress have done to “stimulate” the economy thus far.

The Federal Reserve itself is entirely unaccountable to the American people. Nobody votes for the bankers in charge there, and they don’t have to tell anyone what they are doing in the markets from day to day.

There is no effective movement in Washington to restrain the central bank or limit borrowing and spending. If there ever was one, it vanished entirely over the past decade.

The outlook for sound monetary or fiscal reforms looks grim. The swindle will likely continue until frustration boils over into civil unrest or until confidence in the dollar collapses.

By Clint Siegner

MoneyMetals.com

Clint Siegner is a Director at Money Metals Exchange, perhaps the nation's fastest-growing dealer of low-premium precious metals coins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon, puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

© 2020 Clint Siegner - 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.


© 2005-2022 http://www.MarketOracle.co.uk - 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