For the past two years on “Common Cents” I’ve been warning that the Federal Reserve’s printing of money to buy US Treasury Bonds (to bankroll the annual federal deficit) would not end well. As I’ve made clear, covering for bad fiscal policy (spending / budget decisions) with bad monetary policy (flooding the economy with new money to buy-up federal debt) is a recipe for disaster that will lead to inflation (devaluing of our money), interest rate spikes, or, most likely, both.
The Federal Reserve has made up over $2 trillion from thin air, meaning that the value of the dollars in our pockets have already taken a one-two punch when it comes to how much they can still buy (think about your last trip to the grocery store). Now, in an effort to slow their made-up money train, the Federal Reserve is hiking interest rates in an attempt to slow inflation. The result will be an unstable economic era marked by high inflation, high interest rates, and low economic growth.
The perfect fiscal storm is brewing. What will this mean for you and your family? Your financial future? The American economy?
Listen to the audio link below as I explain just how much of a monetary mess Washington has made, and how to protect you and your family.
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Yours in the fight for freedom.
-Josh
At the outset in 2007 when we learned about Ron Paul, the talk of End the Fed and then Audit the Fed seemed odd. After all, wasn’t “The Fed” a federal agency that was working only to keep unemployment to a bare minimum? Oh, it’s not a government agency, it’s a private banking cartel. Sound money? Isn’t our money the “world’s reserve currency” and therefor as sound as it gets?
Then we were told that inflation of 1to 2 percent per year is good for the economy only to find out that the dollar of 1913 when the Federal Reserve was re-born, is now worth only 4 cents. Ron Paul called inflation the cruelest tax of all b/c it hits those on fixed incomes the hardest.
The quarter minted in 1964 is worth $3.57 today for it’s silver content alone.
There are 2 competing economic theories, the free market as promoted by “Austrian” economists like F.A. Hayek and embraced by conservatives, or the “Keynesian” system of a government controlled and manipulated economy. The Federal Reserve is believed to be to source of all of our economic misery by those who understand the true free market.
Still confused? New to what Josh Kimbrell’s excellent article is trying to get across? Watch this video. https://www.youtube.com/watch?v=d0nERTFo-Sk