When you realize that inflation is an unseen tax, you will also begin to realize all the harm that the Federal Reserve inflicts onto our economy, especially to our standard of living. You may or may not know, there is an index that measures the quality of life in nations. We are not even in the top twenty!😕
If you are like the sad and confused emoji above, you need to read on. I also have some info for the rest of you.
Gasoline Prices
Have you noticed, at least everyone outside of California that petrol sells for around $2-bucks a gallon? Dear Reader, I remember working at a gas station and the price per gallon was .31-cents a gallon. The value of our dollars has declined that much. On the flip-side gasoline rose to over $4-bucks a gallon at one point. Sadly, with all of the Federal Reserve money printing, our dollar's purchasing power will cause a return to individual budget crushing of $4-bucks, again.
People and the media will blame the Arabs. It is our central banks fault. The Arabs get paid in US dollars. If the dollar buy less, they need a higher price. Everyone thinks this is inflation, it is the Fed who destroys our currency. This is the root belief in a gold backed currency. It stops the Fed from printing. This protects our purchasing power. It also keeps government out of our economy and that is a good thing.
Stimulus Package
This started out with the Democrats to help citizens, especially in an election year. The Republicans realized the dangers to industries like the airlines, hospitality and manufacturing, especially in an election year. This is how politicians think. Later, both political parties woke up to the vastness of danger to the entire economy.
They came up with a $2-trillion plus package. We soon learned that the shifty GOP could expand this stimulus to $6 trillion. Now, both parties are looking ahead to the election. While the iron is hot, they are seeking another stimulus package. The biggest hurdle is oversight. The other word for this is profiteering. President Trump is guilty. His ego sees a history book that refers to him as the FDR to the virus and economy. He has blocked out all Democrats. This aspect makes him a weak, small minded man.
Anyway, most of the money will go to big business. The talk about small business loans from the SBA is that, just talk. In a normal year, the SBA receives about 6,000 requests. Last week, they received 500,000 applications. They have $361 billion to lend. They already gave out $151 billion. A lot of that money will be lost to fraud. Doesn't matter to this bureaucracy because the Federal Reserve will buy all those loans, the good, the bad and the ugly. This takes us full circle as to other unseen sins of the Fed.
Let me ask you a question?
If banks knew that every loan that they made would make them richer, would they not approve every loan? Of course, they would. However, life being what it is, businesses fail. This is why banks only lend to people who don't need to borrow. Enter the Federal Reserve in this virus induced crisis. They have announced that they will buy everything and anything from corporate bonds to high yield notes to junk bonds. Common sense tells you that many of these issues will fail. They will end up worthless like a stock certificate from Radio Shack. Someone did a report in the last crisis in 2008 on our central bank. It showed that the Federal Reserve was leveraged to 77-1. In layman's terms, it was bankrupt! It is worse today and the next tidbit puts the leverage off the charts!
Foreign Institutions
There are dollar-denominated debt instruments being offered and traded in many countries in the world. The Bank of Settlements (BIS) estimates this dollar-denominated debt to be over $12 trillion. There are many reasons for these accounts. The central one is commodities. Nations need US dollars to enact a purchase of oil and other commodities. Now, this is the unspoken, unseen danger to the US. The Federal Reserve must comply liquidity to these institutions. In other words if these dealers fail, it will effect the dollar and its value. The Fed lends these firms not just billions, but trillions. This is a license to steal! People, this is not just big powers like the UK or Germany, but everyone out there. We are subsidizing the world. If derivatives are connected to these transactions and they are, the whole system could crash overnight. The Fed also does currency swaps with other central banks. There are other machinations that no one knows about, but in the end, the US taxpayer will be on the hook. By next year there will be rumblings in the global community to end the power of the dollar as the reserve currency of the world. When our dollar is surrendered to a basket of currencies, we all will feel inflation. Our dollar will buy less and then, you will remember this meme, End the Fed!
