Written by a Zero Hedge reader, and a concerned citizen
Dear Chairman,
I would like one member of the FOMC to take the time to tell the American public the truth about the last seven years and monetary policy.
That the sole aim was once again to bail out the insolvent institutions that continue to exist today, mainly Bank of America and Citigroup, all-the-while understanding that under the guise of QE, the Fed would directly/indirectly purchase the equities of these institutions to present this ongoing façade at the expense of the American people.
That monetary policy assisted directly in the destruction of the middle class and the wealth divide that has grown wider at any time in recent history.
That capitalism has been destroyed along with our capital markets directly due to monetary policy, no fundamental price discovery exists in regard to any asset class, and this, from the beginning was the motive. A motive which would/did allow these same insolvent institutions the ability to re-package and sell toxic garbage to yield starved investors due solely to the Central Banks around the world.
That you completely understood when implementing the policies, that these losses would be borne eventually, but disregarded this fact to allow the institutions to deleverage. That Central Banks were cognizant of the executive bonus pool at these same institutions and as regulator, continued to bless the opaque, black box accounting practiced by all to justify the said bonus pool. Once again at taxpayer and investor expense.
That you have been out of policy tools for some time, had no intention, and continue to have no intention of raising rates, but have been backed into a corner where the only tool left is rhetoric. Rhetoric which is only possible due to the current flood of liquidity which the banks must have continue or we will indeed find out immediately, who in fact, is still insolvent (see above). I would even go as far to suggest that if you aimed only in the short-term to attempt to move the credibility scale and did raise short-term rates, the curve would flatten further working towards inversion, further damaging the insolvent institutions you represent.
That you and your associates completely understood the damage you were doing to 80% of the American population and chose to ignore this fact due to the conflict of interest that exists in representation.
That you understood from the beginning that the stress tests were for propaganda purposes only and bared no basis in fact given a repeat of the 2008 crisis.
I believe that this would represent a start, coupled with sending independent forensic auditor teams into every systemically important institution to allow the taxpayer to see exactly what they have been/continue to support, and what the true state of each of these institutions actually is. The façade needs to end to begin to rebuild trust, the damage has been done, and the longer this current situation is allowed to continue, the longer the road to recovery.
A concerned citizen.
