The following is an editorial by James Hall
- Ratcheting interest rates down to the lowest levels in American history;
- Force-feeding the U.S. economy with trillions of dollars through successive rounds of "quantitative easing";
- Bailing out troubled Wall Street firms and institutions;
- Orchestrating the rescue of other troubled financial institutions through shotgun weddings; and
- Lending funds to diverse sectors of the U.S. economy to revive stalled credit markets.
"Bernanke's problem is pretty simple here: he almost certainly wants higher inflation . . . Once the Fed has reduced interest rates to zero, it can't go any further. But what if the economy is so bad that all the standard models suggest you need negative interest rates to get the economy back on track? The only answer is higher inflation. If inflation is running at 2% and interest rates are at zero, the real interest rate is -2%. If you borrow money, you're effectively being allowed to pay back less than you borrowed."
- The US has never experienced 3% GDP growth.
- The labor participation rate has fallen to levels not seen since the ‘70s.
- Inflation-adjusted median incomes have fallen 7%.
- The US’s debt load has risen from $8.4 trillion to over $16 trillion.
- The Fed’s balance sheet has increased from $800 billion to over $4 trillion (larger than the economies of Brazil, France and even Germany).
- Food prices have hit record highs fomenting revolutions in the Middle East and untold suffering around the globe.
- The Fed has funneled trillions of Dollars into both US banks and European banks.
- The Fed has allowed fraud, insider trading, and corruption.
"BlackRock is one of the most concentrated power networks among the global 1 percent. The eighteen members of the board of directors are connected to a significant part of the world’s core financial assets. Their decisions can change empires, destroy currencies, and impoverish millions. Some of the top financial giants of the capitalist world are connected by interlocking boards of directors at BlackRock, including Bank of America, Merrill Lynch, Goldman Sachs, PNC Bank, Barclays, Swiss Reinsurance Company, American International Group (AIG), UBS A.G., Arab Fund for Economic and Social Development, J. P. Morgan Chase & Co., and Morgan Stanley."
These crony capitalists are the prototypes that benefited from Bernanke decisions.
"With the uninterrupted, increase in federal debt, much of which is held by the Federal Reserve, the prospects of achieving prosperity by growing the economy, when interests rates have been near zero, failed miserably. It becomes almost absurd to believe that higher rates on Treasury Bonds will succeed. The new chair of the Fed will be hard pressed shutting down Quantitative Easing."
James Hall is a reformed former political operative. His website is BREAKING ALL THE RULES at www.batr.org. BATR is a comprehensive view of the human condition. Populism best describes James’ approach and perspective on politics.