The United States Federal Reserve Bank has left a century-long trail of damage in its wake. A misguided attempt to manage the stages (growth, prosperity, recession, depression) of the economic cycle has led to nearly complete destruction in the value of our money. The ongoing loss in value of the U.S. dollar since inception of the Fed in 1913 amounts to more than ninety-eight percent.
The cumulative loss in the value of the U.S. dollar is the result of inflation that has been created by the Fed via their expansion of the supply of money and credit. The inflation created by the Fed is ongoing and intentional. So it is difficult to not expect more of the same. But, in addition, they are now just as fully focused on ‘holding things together’.
The Federal Reserve caused the Depression of the 1930s and worsened its effects. Their actions also led directly to the catastrophic events we experienced in 2007-08 and have made us more vulnerable than ever before to calamitous events which will set us back decades in our economic and financial progress.
The new Chairman of the Federal Reserve, Jerome Powell, is personable, likable, candid, and direct. But he cannot and will not preside over any changes that will have lasting positive impact.
The Federal Reserve does not act preemptively. They are restricted by necessity to a policy of containment and reaction regarding the negative, implosive effects of their own making.
And their actions, especially including the inflation that they create, are damaging and destructive; and are undertaken intentionally. Their purpose is not aligned with ours and never will be.
Yet they are not independent. In fact, they have a very cozy relationship with the United States Treasury. That relationship is the reason they are allowed to continue to fail in their attempt to manage the economic cycle.
There are two specific terms which describe our own actions and relationship with the Federal Reserve – obsession and dependency.