It isn’t often that a politician makes a statement about an important matter that possesses actual substance...which is why I admire Ted Cruz:
Over the century behind us, the Federal Reserve system has done more damage to the United States than all the ordnance of all our enemies combined since the formation of the Republic. More, it’s done that damage under a false rationale about “stabilizing the economy” while in fact it assists Washington in draining away the earnings, wealth, and security of ordinary Americans. I’m grateful that at least one presidential aspirant understands this.
Karl Denninger points out - convincingly, I believe - that we've had no real GDP growth since the '80s. It's all offset by debt and printing money.
ReplyDeleteBut more fundamentally, why did we let the Fed get away with replacing it's mandate to halt inflation? For years the Fed has replaced "stopping inflation" (which is 0%) with 2%.
2% inflation is not stopping inflation. 2% inflation will rob you of half your earnings over your lifetime.
But that's our government in action. The goods used to measure inflation are rigged (not representative of what a family actually pays.) The method of measuring "unemployment" is rigged (not representative of the actual population that is not working.)
Our government, with the cooperation of CNBC and other financial reporters, is lying to us.
With all due respect to Cruz, et. al., you don't audit the Fed, you abolish it. You stop the entire fractional reserve system, because it allows banks to create money out of thin air.
Yes, credit is necessary, but it must be backed by real value, not some percentage.