Monday, October 03, 2016

The Fed’s Monetary Politburo 
Is Finally Catching Some Flack
"Needless to say, there is one hell of an argument in favor of market-based price discovery by capital providers and capital users in their tens of millions as opposed to a tiny posse of politicians ... But until very recently, the choice between financial rule by politicians versus markets wasn’t even on the radar screen of public discussion .. The politicians at the Fed have entered a symbiotic embrace with the gamblers on Wall Street. Yet, finally, even an honest voice from the latter has dared to describe the untoward results . The Fed’s policies have fueled a sharp rise in wealth inequality world-wide—and a boom in the global population of billionaires. Ironically, rising resentment against such inequality is lifting the electoral prospects of angry populists.
Do we need chronic, egregiously “easy money” when the financial sector’s size has risen from 1.5X national income during the halcyon days of the 1950s & 1960’s to 5X in the present era?
The current regime of political rule of financial markets is based on the monetary politburo’s self-serving myth that flexible, mobilized, market-set interest rates will impair economic prosperity and that left to its own devices capitalism has a death wish.
To the contrary, mobilized, free-market interest rates are the only route to financial stability, efficient capital allocation & the extinguishment of the rampant speculation & malinvestment which is bringing American capitalism to ruin.
Accomplish that much, and the business cycle will self-correct and capitalist prosperity will be off to the races. To be sure, there is a long way from here to there. But calling out the politics-ridden nature of the Federal Reserve and the myth of its vaunted 'independence' is a least a start in the right direction."
- David Stockman*
LINK HERE to the essay

1 comment:

Anonymous said...


The Fall of the House of Fraud (And Peak Corruption)
October 2, 2016

Peak Corruption represents the terminal phase of any business, social system, government or collective entity of any kind. Peak Corruption is absolutely and by definition the end of the road. – Guest post by Stewart Dougherty

Guest post by Steward Dougherty – The United States has transitioned from a Republic, to a Democracy, to a Crony Capitalist Oligarchy, to its present state: a thinly disguised Monarchy.

This monarchy is ruled by the the American House of Fraud, the nation’s Royal Family. The House of Fraud is populated by a small group of individuals who live like kings and queens by systematically plundering the wealth of the nation.

While members of Royal Families are typically linked by blood, the members of the American House of Fraud are linked by psychological characteristics. To become a member of the American House of Fraud, one must demonstrate exceptional levels of greed; sanctimony; power-lust; shamelessness; compulsion to control; love of wars-for-profit; lack of conscience; self-righteousness; egomania; and superciliousness: in other words, psycopathy.

The mantra of The House of Fraud is: “Never Enough.” No matter how much money they plunder, no matter how many people die in their wars for profit, no matter how much havoc they wreak, it is never enough for them. Their ethic is this: For starters, we want it all; then we want more. They represent a bottomless pit of need, and therefore, they create an endless curse of looting, chaos, destruction and death.

The House of Fraud cannot survive, because the people can no longer afford to maintain it. Already, it has financially and spiritually destroyed the American Middle Class, and this devastation spreads and becomes more acute every day.

By any officially accepted accounting measure one wishes to use, the House of Fraud has completely bankrupted the United States. Rather than admit this and reform itself, it has doubled down to loot every remaining private asset it can get its hands on before the already failing economy enters a new, more deadly phase of disintegration.

Every Royal Family needs a bank, and the Bank of the House of Fraud (BotHoF) is known as the Federal Reserve System. The BotHoF has a mono-mandate: to facilitate the maximum amount of national and global looting by The House of Fraud, without outright destroying the global economy that produces the money it steals. It views itself as an evolved, intelligent parasite: one that does not kill its hosts, at least not for as long as possible. It fully recognizes that at some point, hosts must die. By then, it expects to be “Good to Go,” with all the plunder it requires, for the then time being. The job of the BotHoF is to keep the Looting Machine in excellent mechanical condition, and the Looting Fields fertile.

http://investmentresearchdynamics.com/the-fall-of-the-house-of-fraud-and-peak-corruption/#comments