A Murray Sabrin email to NorthJersey.com:
| |||
| |||
Regarding “Fed: Rates to say ultra-low even as inflation rises” (Page 8L, Aug. 28).
Federal Reserve chairman Jerome Powell announced interest rates will be kept near zero even if inflation rises above its 2% target. In other words, the Fed will continue to create money out of thin air. Creating money out of thin air causes price inflation—in goods and services and in assets such as stocks and real estate.
Since it was created more than a 100 years ago with a mandate to keep prices “stable” and smooth out the business cycle, the Fed has failed miserably. The US dollar has lost 95% of its purchasing power since 1913, and the Fed’s manipulation of interest rates has caused unsustainable booms that have always ended in painful busts.
In 1977, the Fed’s mandate shifted to "promote effectively the goals of maximum employment, stable prices, and moderate long term interest rates". In short, the Fed has in effect become a central planning institution. Moreover, the Fed has decimated the return on savings for retirees and others who depend on income from their money market accounts and other financial instruments.
Instead of letting interest rates be determined by supply and demand in the financial markets, the Fed assumes it can “manage” one of the most important “prices” in the US economy.
Thomas Jefferson said never create a National Bank (Fed). They will destroy the currency. This should have been taught in every high school in the country for all past and present generations. We have only ourselves to blame. 1879 to 1913 were our country's only financially non inflationary years. Then 7 enemies of the people got together in a secret meeting in Georgia and destroyed the currency by creating the monster aka Fed. A new world order is desperately needed. I suggest it be spiritually based..
ReplyDeleteYes, and the Fed's ZIRP policy has contributed to the massive pension time bomb that is going to explode so big, we will all get hurt.
ReplyDeleteEh, people have been saying this for the last 100 years, and yet here we are, with the highest living standards in all human history. We had booms and busts even when on a gold standard by the way, and deflation is even worse than inflation.
ReplyDelete