Funny Money... The Fed Plans for the Next Crisis - Ron Paul

[DamianTV]

http://ronpaulinstitute.org/archive...ptember/12/the-fed-plans-for-the-next-crisis/

In her recent address at the Jackson Hole monetary policy conference, Federal Reserve Chair Janet Yellen suggested that the Federal Reserve would raise interest rates by the end of the year. Markets reacted favorably to Yellen’s suggested rate increase. This is surprising, as, except for one small increase last year, the Federal Reserve has not followed through on the numerous suggestions of rate increases that Yellen and other Fed officials have made over the past several years.

Much more significant than Yellen’s latest suggestion of a rate increase was her call for the Fed to think outside the box in developing responses to the next financial crisis. One of the outside the box ideas suggested by Yellen is increasing the Fed’s ability to intervene in markets by purchasing assets of private companies. Yellen also mentioned that the Fed could modify its inflation target.

Increasing the Federal Reserve's ability to purchase private assets will negatively impact economic growth and consumers’ well-being. This is because the Fed will use this power to keep failing companies alive, thus preventing the companies’ assets from being used to produce a good or service more highly valued by consumers.

Investors may seek out companies whose assets have been purchased by the Federal Reserve, since it is likely that Congress and federal regulators would treat these companies as “too big to fail.” Federal Reserve ownership of private companies could also strengthen the movement to force businesses to base their decisions on political, rather than economic, considerations.

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Full article on link at top.

 

[dean.engelhardt]

This is because the Fed will use this power to keep failing companies alive, thus preventing the companies’ assets from being used to produce a good or service more highly valued by consumers.

Hoping this could be more of a national topic. Invisible hand gets smacked.

 

[DamianTV]

Hoping this could be more of a national topic. Invisible hand gets smacked.

MSM is dead, except to the dinosaurs who do not think. The way news like this spreads is no longer via dying TV broadcasts and obsolete newspapers, but by when you share articles akin to this with your friends and on other sites.

If this is not a national topic, then make it a national topic.

 

[dean.engelhardt]

Worth a bump. Just imagine a how much more power the Fed will have is they actively manipulate stock prices, much like China does.

 

[Zippyjuan]

They can't unless Congress authorizes it.

 

[jllundqu]

http://ronpaulinstitute.org/archive...ptember/12/the-fed-plans-for-the-next-crisis/



Full article on link at top.

As always... flawless breakdown by Dr. Paul. Too bad neither Trump nor Hillary have any intention of stopping this beast. Trump wants to use the 'really low interest rates' to finance massive infrastructure spending to the tune of 500 billion and if they raise rates we could simply default. Great plan Trump.... seriously.... bang up job you're doin.

 

[dean.engelhardt]

They can't unless Congress authorizes it.

I believe congress would 100% authorize it. Say GM, Goldman Sachs and other big cap companies get assurances from the Fed they will manipulate the stock market in their favor; but they just need congress approval. 95% or more of congress will be lining up for big checks. Crony capitalism at its finest.

This will heighten the pay to play culture. Politicians are probably counting the dollars in their heads now.

 

[Suzanimal]