The Federal Reserve: Instigating Crisis Since 1913
Meet the system responsible for the major financial blunders of the last century.
The Federal Reserve mandate of moderate long-term interest rates has clearly not been met. The Fed Funds Rate has plotted a path of extremes over the decades, ranging from 0% to 19%, not exactly stable. The Fed has consistently set rates too low, leading to credit bubbles, which always end in recession or depression. Free-market pricing wouldn’t be manipulated or influenced by political considerations or agendas.
The mandate of maximum employment has also been a miserable failure. The easy-credit policies of the Federal Reserve during the 1920s led to the Great Depression, with unemployment rates exceeding 20%. Unemployment has averaged between 5% and 10% consistently since the formation of the Federal Reserve. Government bureaucrats have attempted to hide the true rate of unemployment through the use of deceptive categories and by changing the rules of the game. True unemployment, consistent with the way it was measured during the 1930s, is currently over 16%. This level of “maximum” employment is due to the policies of the Federal Reserve.
The facts prove beyond a shadow of a doubt that the Federal Reserve has failed in every one of its mandates: Inflation has destroyed the value of the dollar. Interest rates and employment have been violently erratic. The Fed has been manipulated by politicians, showing a complete lack of independence. And only two of the fourteen Chairmen have been truly independent and competent -- Paul Volcker and William McChesney Martin. The incompetence and arrogance of the other Chairmen have brought the country to its knees.
The final chapter is about to be written.
Our fiat currency system has proved to be a wretched failure. Within the next five years, a final crisis will bring an end to this diabolical experiment in hubris. Man is not smarter than the free markets. The US dollar is a piece of paper. It only has value because people have trust that the government issuing the paper is financially stable with rational fiscal policies.
This doesn’t describe the United States of today. When the next crisis causes the dollar to collapse and uncontrollable inflation to result, abolition of the Federal Reserve will become feasible. Average Americans have been victims of the boom and bust caused by the Federal Reserve policies. The sole beneficiaries have been bankers, politicians, the military industrial complex, and the super-rich elite.
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