It is obvious that the real objective of the Federal Reserve’s quantitative easing policy is not to reduce high unemployment or contribute to the recovery of our nation’s sluggish economy as they claim. If that was the intent we would have abandoned the policy years and a trillion dollars ago as it clearly has contributed nothing to either. What little progress that has been made can only be attributed to time itself. The sole purpose seems to be to create an extremely overpriced stock market that only benefits speculators and the broker/trading operations of the Wall Street megabanks. This is of no real value to long term investors as it is unsustainable as evidenced by the drop in price at the mere mention of tapering back. This overpriced market will inevitably lead to rampant inflation at some point. Mr. Bernanke’s refusal to allow the market to revert down to a realistic value almost suggests that the Federal Reserve is actually attempting to create a number of years of double digit inflation. This of course would allow them to write off all the toxic assets that have purchased with a lot less impact. Likewise the megabanks could write off the toxic assets they created and are still holding onto. Unfortunately every working class family would suffer the disastrous effects that out of control inflation bring to those who are not super wealthy. It is time that Congress rethinks the vast authority it has bestowed on the Federal Reserve. We need a central bank that is structured to serve the best interest of the entire nation, not just a few on Wall Street.
Posted on: Sat, 03 Aug 2013 02:31:17 +0000
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