- "Panta Rhei" or everything flows. What it meant is that change is constant.
- Heraclitus
We know that the ancient Greek is correct. We should know by now, that the Federal Reserve is a phony institution created by the wealthy for the wealthy. Last week the US and UK banking groups met to "discuss" their respective economies and possible interest rate change. They did nothing. For those of you who do not have score cards, the US under the Federal Reserve has had zero "effect" interest rates since 2003. In all that time with all the BS from political pundits and candidates about what they can do for the economy and periods of rapid growth, the Fed has not changed their position on interest rates. In fact, they found more ways to add stimulus by purchasing assets or QE among other tricks of their manipulating ways.
Biggest News...
this year has been inflation, supply bottlenecks and labor. We can address the last two through the pandemic. If you recall in March 2020, the effects and fear of COVID-19 caused over 10 million to lose their jobs under government lockdowns. Then, it dawned on President Trump that the effects of a downward economy would hurt his reelection. He gave out one lie after another. He sought to buy time and confidence that under his command, the economy would return to full strength.
Stimulus
The two political parties feared the next election. They feigned compassion by offering free money to all. President Trump signed moratoriums on evictions for renters and mortgage holders. Their gestors were appreciated. Money was invested for a virus cure. Hope returned. This is why we had a close election. Many were fed-up with Trump, but others offered to give him another chance.
Last November...
the country chose Biden. Medicine was developed to fight the virus. The country as well as the global community saw positive signs in fighting the disease. All economies began to return to normal. However, there were still doubts and fears. We saw outbreaks in large gatherings like in closed environments of planes and stadiums. The idea of the mask finally gained acceptance. I still wear mine. Slowly, fears of shortages like in toilet paper began to subside. However, we also began to see price increases. It showed itself in gasoline (energy). At the grocery store it appeared in a slow process. First, there was no product like tuna, rice and toilet paper and then, there they were except they all cost more.
Do you see the transition? Workers are returning and supply problems were slowly being addressed to which leads us to the present and last item - inflation. No political politician will willingly bring up a hot issue like unions, race or inflation. They play, "Out of the press (sight), out of mind." However, enough grumbling causes the topic to find press (sight) and dialogue (mind).
Now, knowing human greed and logic, it is easy to understand why some companies and nation's pushed their economy to produce. They sought market share. However, the problem of logistics came into play. You make your product. You get it ready for transport. Then, you find that truckers need more money due to the cost of energy, regulations and labor. It is not only ground but air and shipping. Then, the connection of one transport to a warehouse or port finds the same economic problems. This is the current state of product to the shelf. The whole system also had another problem. The concept of just in time delivery to keep inventory costs down adds to the problem. No one has inventory. News leaked about a shortage of chips, medical supplies and items that were needed for repairs. Enter the Fed.
Powell Speaks...
about inflation for the first time last March (2021). He says, "It is transitory." It will clear itself up within a few months. We move to the end of the next quarter or the end of June. Inflationary numbers get worse. Powell gets "Yelling" Yellen and others to support his call. Then, Powell adjusts his timeline toward the end of the year. He comes out last week after the no change in rate meeting to say, "Inflation will probably continue into the second or third quarter of 2022."
Heraclitus would ask...
Haven't you had enough of this lying buffoon? The Federal Reserve's policies are leading to negative rates. This means money is worthless. The institution has destroyed the American standard of living. It is bankrupting the nation. The whole agency is in violation of the constitution and beliefs by the founding fathers on our currency. We need a change. We need to End the Fed! Peace.
