Monday, March 23, 2020

Federal Reserve: Solitaire Monetary Policy

This morning the Federal Reserve announced a clearance sale on all fiat money that it has left. It will only be limited to how fast the transaction can be completed. By the looks of it a contra party signature may not be required nor any one to sign for the delivery of money in spite of even Amazon's requirement on some Prime Accounts transactions. The money is coming with sirens and it will go through red lights. Actually that's not new. The Modern Monetary Theory has been ignoring economic red lights for some time.Heard of the Modern Monetary Theory? It's distinction is that deficits don't matter and fiscal discipline is cast aside. The Fed spawned the Modern Monetary Theory by it's quantitive easing after financial meltdown in 2008.The Fed created the bubble that now has collapsed and the Fed is trying to reflate with yet another QE. Simply. We do not have an economy in the traditional meaning. We have an economy based on Federal manipulation using fiat money. Our economy is now tied to a federal reserve game of solitaire that it cheats at. The fed claims to be independent of congress. That's another way of describing the fed as outside legal jurisdiction. That's a convenience enjoyed by congress itself. The fed covers up bad congressional policies by just printing more money.Congress and the fed do the devils work.