The Federal Reserve, when it was initially created in 1913, chose the word “Federal” because it would make the bank sound as though it was aligned with the Federal Government (it isn’t)… and the word “reserve” because it wanted to sound like it had the reserves to support the system: that the Fed would act as the ultimate backstop.
It is telling that the Fed was engaged in this kind of marketing from day one. Most Central Banks don’t try to hide their agendas; they simply go by the title “Central Bank of [insert country or region here].” This title at least makes the scheme obvious: this is a bank that believes in Central Planning.
Banks are strange things. As the hubs through which money flows into and out of the economy, banks are supposed to be rooted in capitalism. But the Fed and its cohorts seem determined to insure that capitalism, particularly democratic capitalism, becomes a thing of the past.
Capitalism, at its core, means taking risks in the pursuit of success. Sometimes they risks work out (success). Most of the time they don’t and you fail.
The Fed doesn’t believe in this paradigm. For the Fed, none of these rules apply to the large banks. Those banks cannot fail. We’re told it’s because these banks are too important.
This, in of itself is offensive. The fact that the Fed has now spent six years punishing Americans as a whole in order to prop up the large banks is where things shift from offensive to obscene.
QE had absolutely nothing to do with creating jobs or improving things for Main Street. After all, if QE was supposed to improve things for all of us, the Fed would never have launched QE 3 or QE 4 because QE 2 proved point blank that QE was a dud when it came to job or economic growth.
No, QE was designed to funnel money to the big banks. Heck the guy who managed the first QE program even admitted this in an op-ed piece in the Wall Street Journal. The fact that the Fed spent another $3 trillion after this only confirms that QE had nothing to do with the US economy.
Indeed, one could easily argue that when it came to improving the economy, the Fed would be the last entity one would turn to. The Fed’s track record for economic forecasting has been absolutely abysmal over the last 20 years. The Fed missed the Tech Bubble, the Tech Crash, the Housing Bubble, the Housing Crash, the European Crisis, and on and on.
At the end of the day, everything the Fed has done has been focused on propping up a broken system. Eventually the Fed’s efforts will fail at which point so will the Fed (just as the last two Central Banks in the US failed). At that point we can only hope that something resembling the capitalistic tendencies that made the US a super power will be allowed to flourish again.
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Best Regards
Phoenix Capital Research