What The People REALLY Think Of The Fed
I want to thank everyone who took the time to write in and respond to our poll on whether you trust the Fed to lead the economy through the current situation that we are facing.
I received hundreds of emails from you telling me exactly what you think about the Fed and the actions they’re taking… and more than 98% of you agree…
No one trusts the Fed.
Your responses ranged from a simple “don’t trust them” to vociferous diatribes against their very existence. Here are a few of the printable answers we received…
- “Seriously? LMAO thought this was a trick question, but if you insist… 2002 Milton Friedman’s birthday, Fed admitted, “Yeah, we helped cause the Great Depression. Sorry, won’t happen again.” Only to end up being a major contributing factor six years later. So, yeah, I trust the Fed… as far as I can throw a battleship.”
- “I do NOT trust them and I look for it to get much worse in the coming months.”
- “No, I don’t think the Fed can “lead” the economy. I believe that they “lead” investors to the shoals and beach them at their convenience, then take more out of pockets that have nothing but moth dust in them to “correct” their miss-calculations. Why? Because there really is no Fed Reserve anymore. They just won’t stop using the term so that the rest of the public won’t panic. They don’t like the idea of another “run on the bank” circa 1929 market crash. They like crashing things like little boys do with Tonka trucks and Hot Wheels cars while they think we aren’t looking… because they are so good at diverting attention from the real problem… them and their ideas…”
The bottom line is the growing distrust and politicization of government institutions has spread to the Fed. And no one trusts them to do the right thing.
I will admit it was a bit of a loaded question. Anyone who knows the Fed’s history knows they have rarely been able to predict future economic outcomes. They certainly never give pause to the unexpected consequences of their actions. Their choices have led to bailouts for corporations and asset owners, leading to increased wealth inequality.
So, should we end the Fed?
A few days ago, I said I didn’t have a better mousetrap for managing the bloated balance sheet and rickety plumbing that our financial systems run on.
But now I have the answer: Set the fed funds rate at 4%. Permanently.
That’s a nice fixed rate that businesses and consumers can count on so they can make plans for growth, investment, and savings with some confidence in the expected outcome.
Then disband and go home.
No more ivory tower academics stroking their chins while sucking at the taxpayers teet.
(And if they can still get $500k speaking gigs, more power to them.)
But leave us, and the supposedly free markets, alone.
Looking forward to trading with you,