The Federal Reserve’s monetary policy has led to 62% of the $46 trillion increase in US household wealth over 4 years going to the top 10% wealthiest Americans, benefiting wealthy asset holders while hurting everyday Americans through inflation.
Federal Reserve’s 0% interest rates from 2008-2015 and 2020-2023 penalized savers, deliberately engineering 2% annual inflation and 20% purchasing power loss over 10 years, violating the moral contract between government and citizens.
Former Fed Chair Janet Yellen argued that 2-3% inflation camouflages wage cuts by giving workers nominal increases while hiding real value loss, based on the flawed assumption that workers are unaware of their real income decline.
The Federal Reserve’s claim to engineer the economy through a single tool (interest rates) is based on the flawed assumption that the economy is a simple, controllable system, despite the complexity of macroeconomics.
The Fed’s groupthink and lack of intellectual diversity, with a 10:1 Democratic to Republican registration ratio, can lead to bad policy decisions and inflation, as seen in the 19-year consensus among Board of Governors members until 2022.
Issuing 50-year gold-backed US Treasury bonds could stabilize the dollar and provide a dependable store of value, utilizing the $700 billion in gold reserves held by the US government.
Alan Greenspan’s early writings on gold’s benefits were considered radical, but his later acceptance was due to his consulting firm’s reputation and buttoned-down image.
Keith Weiner and Judy Shelton argue that the Federal Reserve’s current system of setting interest rates and reserve requirements interferes with free market forces that would better channel credit to the right places and people.
The US economy lost 28,000 private sector jobs in October 2024, the lowest since 2010, with revisions showing job destruction began earlier in 2024, indicating a recession start in 2024.
63 corporate bankruptcy filings occurred in August 2024, up from 49 in July, matching the 2009 peak, while 19 large bankruptcies in November 2024 marked the highest since the 2008 financial crisis.
The Federal Reserve is struggling with data revisions affecting their projections, yet they may continue advocating for lower interest rates despite market expectations.
The US economy is in a technical recession, but the National Bureau of Economic Research typically waits 10-11 months after the start to officially declare it.
Scott Bessent, former head of Soros Fund Management, proposes extending tax cuts and giving manufacturers 2 years to relocate production before imposing tariffs on China.
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