Common Sense Living

Money: The Cocaine of Wall Street

Make no mistake!  The FEDERAL RESERVE is the ROOT CAUSE of  ALL current economic problems!

Money is the “Cocaine of Wall Street”, and The Federal Reserve, that most corrupt organization to ever exist, is their dealer!

Investors and money managers have become addicted to 10 years of cheap supply, and they are hooked.  They have overindulged.  They are high.

The chart below shows just how much of this money drug has been pushed!  Until this year, the cheap money has propelled the stock markets to unrealistic levels.

moneysupply

Now the inevitable is happening.  The Federal Reserve has cut off supply, and the lives of those on Wall Street, and Main Street, are on a crash course with financial rehab!  The money that once flowed freely is drying up, and a painful and costly sobriety is becoming  the new reality. 

Through 10 years of quantitative easing (QE1, QE2, and QE3), central banks around the world have printed money like a cheap drug.  Banks, corporations, governments, and individuals have borrowed to the point of becoming ill.  They are sick on debt.

This week, the Federal Reserve raised interest rates again, and signaled the cost of money will continue to rise.  Even if they didn’t raise rates, the Fed is letting $50 Billion a month roll off its balance sheet to bring the money supply back to “normal”.  The drug is becoming more costly.

Just as the markets went up with cheap money, they will be brought down through the withdrawal process.

It was wrong of the Federal Reserve, and other central banks, to deal the drug in the first place.  What they SHOULD have done is let the most severe addicts crash early on, instead of enabling them to continue getting high.  They should have let the mismanaged institutions FAIL!  That’s what capitalism is about!

President Andrew Jackson, when asked about his greatest accomplishment, said in 1836 “I killed the Bank”, referring to The Second Bank of the United States, the central bank at the time.  They did the same thing the Federal Reserve is doing now.  From 1836 to 1912, we had the most stable economic conditions ever, with disruption caused only by the Civil War.

It’s time we put the blame where it belongs, and hold the Federal Reserve accountable for its mismanagement of the American and world economic system.  It’s time we “kill the bank”, and replace it with a monetary system based on our Constitution.

 

 

 

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