How Long...

are we going to listen to Chairman Powell and his lying band of corrupt bankers, the Federal Reserve? No one needs a recap on their formation. The most influential banker of his time, JP Morgan got a weak man, President Wilson to back the idea. Ever since, the banking industry and big time Wall Street houses knew that the Fed had their back. This means no matter how reckless the two are in their investments, the worst that could happen to them was to come out even. The Fed allows them to privatize the profits and socialize the losses. 

Flash Forward

We all felt the effects of COVID-19. As the government added stimulus to ease the pain, demand slowly grew. However, the pandemic had more than the physical virus. It had the effect for the healthy. Parents did not want to risk having their children in confined spaces. Teachers felt the same fears. The example spread throughout economies. People who worked at ports or on ocean carriers felt the same danger. So, we have a problem of worker participation. 

Result

We got shortages in supplies from toilet paper to masks. As the economy strengthened, other areas like computer chips, parts for phones, cables, etc. showed the same limited supply. Basic economic laws went into effect: More demand with less supply = higher prices. This appeared around the globe in 2020. Our Fed Chairman avoided the issue. He made his first response in February of this year. At that time, he claimed the shortages and resulting inflationary prices would soon recede. When June came around and inflation persisted, Powell said "This is transitory." Last week, he cast the blame on the virus. It is frustrating. He goes on to say that inflation could stick around well into 2022. How many times being wrong is enough?

We say, "BS!"  Hey, we are not the only ones. There are people in power who realize the same thing. However, they do not have an answer or courage with their beliefs. They are terrified to suggest a return to the constitution which said Congress decides currency issues. They fear a catastrophic effect to banking and the global community. The most that they will do is offer a name with the hope that this convinces the public that they are aware. They have a solution. They have the right horse to lead the agency. In the meanwhile, everyone and every corporation will suffer from inflation. This adds risk to the stock market and the economy. There is confusion. Here are some bylines...

Robert Kiyosaki, the best selling author sees a market collapse this month. One site that we frequent is Stansberry Digest. They have people who give all sides to the market and economy. Dan Ferris is a Bear. Steve Sjuggerud believes in the "melt-up." Doc Eifrig is neutral. Our Sebastian sees this: When 7-stocks control 25% of the S&P 500 that is rigging that is manipulation and that is deception!

One serious reason why we hate the Fed is debt. Debt is not transitory. It not only grows and looms over an economy. It compounds to make the burden heavier each year. At the moment, our government is running the worst deficits in our history. The addition of more stimulus will only compound the effects. It is not that we are against the infrastructure proposal, this should have been done thirty years ago. We want ways to pay for the plan. We should tax the rich like Eisenhower did after WWII and close loopholes. We end all foreign entanglements which would allow us to cut the military budget and of course, End the Fed!

Poor Leadership

Our society is being negatively effected by continuous deficits. If the government can do it, why not them? People are buying stocks in the belief that they can only rise. They are following influencers. They are buying on margin. Margin debt is at a record and approaching $1 Trillion. There are more options being sold than shares of stocks. Keep in mind, the majority of options end up being worthless. While people are in a buying mode, 60 ships sit in the LA harbor waiting to be unloaded with no timetable. China has Evergrande and rolling blackouts. Inflation for August came in higher than forecast at 3.6% while our government offers a 30-year T-Bond at 2.06%/ Lies! BS! One other thing. That wrong forecast is typical. Case in point about our so-called "experts." I watched a PBS piece on SpaceX. Behind the scenes, the experts at NASA and the Pentagon were mocking Musk (Tesla CEO) in 2002. They said he does not know what he is talking about or anything about space. We forget who these people were except for one point. They are always wrong! 

One other thing...

The above quotes on Chairman Powell were taken from a summit. Guess where? In Europe among the ECB people. These central bankers meet all the time and yet, they are considered independent. I consider this collusion. By the way, no one at this inflation meeting presented the UN report showing global food prices up 31%. No one talked about the fact that the 1% (richest) avoided paying $163 Billion in taxes while all nations suffer deficits. Did they even mention how the 19-members of the EU had inflation of 3.4% with energy (Europe still uses energy in their formula) leading the way? They did say that they agreed with Powell that inflation would soon recede. "Birds of a feather..." We say, End the Fed!  Peace.