Analysts at PIMCO say that for the Fed to reach its goal of lowering inflation to 2%, we need fewer people to be employed. Reduced incentives to offer raises and bonuses and less spending from the “resilient” American consumer can help cool down inflationary pressure. But there’s an elephant in the room: Why do we let a handful of unelected central planners decide what’s best for markets (and human beings) to begin with?
The Federal Reserve has lost well over $100 billion dollars, and even when it returns to “profitability,” it will likely take over four years before the central bank is completely in the black.
And you’re going to foot the bill.
Gold is nature’s money.
Aristotle listed four characteristics of sound money: it must be durable, portable, divisible, and have intrinsic value. Gold possesses all of these characteristics, which is why gold has served as money for thousands of years.
If you want freedom, you need sound money.
So, argues economist Ludwig von Mises.
It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of right.”
We’ve been told inflation is caused by greedy corporations. We’ve been told that inflation is Putin’s fault. Other people just want to blame COVID-19. But are any of these really the root cause of inflation?
Economist Dr. Antony P. Mueller says none of these excuses really account for the rash of rising prices we’ve seen in recent months. At its core, this inflation is caused by a deeply flawed monetary system that allows central banks to create money out of thin air.
The Federal Reserve is a money-making enterprise.
This probably shouldn’t come as any surprise, given that the central bank can create money out of thin air and buy yielding assets. Still, the Fed rakes in a staggering amount of money.
The central bank recently released its unaudited preliminary financial statement for 2021.
As Ron Paul pointed out, the recent brouhaha at the Federal Reserve when information came out revealing several central bank officials making multiple multimillion-dollar stock trades in 2020 even as the Fed was putting its big fat thumb on the economic scales was a minor thing compared to the bigger scandal – the everyday operation of the Fed.
The Fed engages in price-fixing. And it fixes one of the most important prices in the economy – the price of money. Peter Schiff said this always ends in a disaster.
Will the Federal Reserve tighten monetary policy to fight inflation? Or will it keep its loose monetary policy in place to support the fake recovery? The central bank has a profound influence on the economy, for better or for worse. But should the Federal Reserve even exist? In this episode of the Friday Gold Wrap, host Mike Maharrey argues that it shouldn’t – not if you follow the original meaning of the Constitution. He makes his case with an interesting history lesson on the creation of the First Bank of the United States.
As you probably know, Warren Buffett has never been a fan of gold and has publicly disparaged the yellow metal on more than one occasion. About a year ago, he compared investing in gold and stocks, arguing that over the long term gold is an “unproductive asset” that “doesn’t produce anything.” So, why have it, unless you just want something to “fondle.” At the time, we argued that Buffet’s comments fall apart when you realize that gold is money. After all, I doubt you would ever hear him say “never hold cash because it’s an unproductive asset.”
Well, Buffet is at it again.
