The Federal
Reserve is Robbing You Blind
Two weeks ago, I explained to Capitol Hill Daily readers what America might look like after a government collapse.
And
I ended on a note about the Federal Reserve.
Today,
I’m going to begin with a radical statement:
The purpose of the Federal Reserve is to benefit its
shareholders… not America.
This statement is confusing to most people, because they
assume the Federal Reserve is an agency of the government. It’s not…
In fact, it’s a private entity. Only the
shareholders aren’t private investors. They’re the major “too-big-to-fail”
banks of America.
The next
thing you must understand is that the Fed was given (by Congress) the most
lucrative monopoly on earth… total control over the creation of money. So it
can print money, legally. What a business!
Now,
don’t get me wrong – there is some regulation. What Congress
gives, it can also take away.
The
problem is that when you can literally create money, you have lots of cash to
influence the system.
Indeed,
when it comes to the economy, the Fed is even more powerful than the president.
Only Congress and the president, working in unison, can check the
power of the Federal Reserve.
And
considering that such cooperation isn’t exactly the norm in D.C., the Fed is using
its insane amount of power to rob you blind.
Here’s
how…
Too Big
to Fail
Simply
put, the supply of money should only grow at about the same rate as the
economy. It creates a solid equilibrium between goods in the economy and the
money supply.
But when
the supply of money grows too quickly, it shatters equilibrium and leads to
inflation (i.e. – too many dollars chasing too few goods).
And
right now, we have too many dollars.
Of
course, we can thank the economic crisis in 2008 for that. As you know, when
the banking crisis erupted, the Fed was fearful its shareholders were going
belly up. So the former CEO of Goldman Sachs (GS), Hank Paulson,
arranged for billions of dollars to be transferred from the government to these
private banks through the Troubled Asset Relief Program (TARP).
Keep in
mind, I believe allowing banks to go bankrupt would’ve been the best solution
for America. We have over 200 years of bankruptcy court precedent, and the
courts should’ve overseen the liquidation of these mismanaged banks. It
ultimately would have punished the guilty parties.
But that
didn’t happen. Instead, the Federal Reserve kicked into action. It created over
$1 trillion that was lent to these same banks to keep them from collapsing.
Now,
with so much money floating around, bank deposit owners are worried that the
supply of dollars will outstrip demand. This could drive the price of the
dollar down. In fact, I believe we could even see a flash crash of the dollar.
And
that’s precisely how the Fed is stealing from you. It’s knowingly devaluing the
dollar, so your money can buy fewer goods.
And no
one is safe.
Say
you’re happily employed – perhaps you even got a raise recently. Unfortunately,
inflation can devalue your dollars so fast that you end up with less buying
power than you began with.
As long
as the Fed continues on its current path, we’ll continue holding a currency
that’s worth less and less every day.
How Can
We Protect Ourselves?
We’ll
all likely get poorer unless we have taken serious steps to hedge ourselves.
Buying
gold, stocks, real estate and other hard assets is the best hedge. When the
dollar crash comes, these assets will likely bounce back from the inflation,
even if their prices decline at first.
Bonds,
CDs and cash are the assets I encourage everyone to avoid. They’ll be crushed
by inflation.
Once
again, this is just a small part in the ongoing quest to see what America will
look like after a government collapse.
Along
the way, I want to explain what’s happening behind the scenes in Washington and
give you as much actionable advice as possible.
Until
next time, I remain…
Your
eyes on the Hill,
Floyd
Brown
1 comment:
Oh well, at least it means my overdraft is worth less and less every day (always look for the silver lining, me)
Post a Comment