Was the Federal Reserve under an unspoken mandate to keep the easy money going during Covid that overrode its mandate to keep inflation under control?
Low rates is less than half of it.
The Covid relief bills, vaccinating the economy with Trillions of Burn money, was at least as responsible.
Excellent piece, as usual. Have you looked into the effectiveness of the Fed, however, vs. pre-Fed financial panics? My intuition (not having done the empirical analysis yet) is that there's probably little difference in financial stability pre and post-Fed, and that the Fed is simply another way for powerful interests to keep on making massive amounts of easy money. End the Fed? Looking more and more like Ron Paul may be on to something.
Great article Michael, I was interested in getting your thoughts on the Fed!
In regards to the Fed this article by Fabio Vighi is well worth a read.
He explains that the covid easy money policies were advised to the Fed (by BlackRock) well before covid (in August 2019) as the BIS and BlackRock were already anticipating a downturn in the global economy in mid 2019. So, in essence Covid was the perfect cover to unleash these unprecedented monetary policies that these big financial institutions were already ready to use.
Thanks. The Federal Reserve, just another one of the criminal organizations attached to the whims of the World Economic Forum and their minions who also happen to be running the United States. When we become hostage to tyranny we lose plot. Time to correct the mistake.
FYI Michael- info on Ebola
2.Thread here: McKinsey and Gates and lockdowns
Convenient, isn't it, how they do things.
"There was no way they could bribe everyone!"
Oh but they did!
The FERAL Reserve (which is actually no more "federal" than Federal Express) also had massive QE as well, which they didn't even begin to taper off until late 2021, and also dropped the reserve ratio to 0%, where it remains today. It was UBI for the rich, basically. And now they are jacking up rates and also doing Quantitative Tightening at the same time, deliberately engineering a recession in a desperate attempt to quash the inflation that they literally helped to create.
Also, the FERAL Reserve in March 2020 put out a cherry-picked, pro-lockdown "study" of the responses of various cities during the 1918 flu pandemic, making it seem like there was there no economic tradeoff in the long run, even for relatively protracted restrictions. If that really were so, then why did they feel the need to paper over the lockdown-induced damage with unprecedented easy money policies? (Most likely, the differences in the outcomes in various cities in 1918 was more due to east coast vs. west coast differences regardless of restrictions.)
You can never go wrong by throwing the bums out.
The Fed is a political instrument and an unofficial arm of the federal government. End the Fed, indeed!
"The Federal Reserve is a useful system when it sticks to doing its job."
It's job is clearing checks. Monetary policy is the province of Congress.
"The congress shall have the power to coin money, and regulate the value thereof".
The Fed owns the US. Whatever it pays for, it is the taxpayer's money that the Fed is lending out at an interest.
The Fed has no idea of how to get out of the mess they have created. They don’t even accept the fact that they have caused it. Inflation running at 8-9% and the overnight rate at 4% isn’t going to stop it. They do not have the gonads to jack it up to 10%+ which is what it’s going to take. They just talk the talk they will not walk the talk. We have to try price controls and other failed policies first.
Michael, this may be of interest:
Why Is the Federal Reserve Collapsing the Economy?
This is an extraordinarily weak article. The malicious intent to manipulate the Fed in 2021 is not addressed at all. First the Biden Adm did not renominate Jerome Powell until well past the normally expected timeframe. The Modern Monetary Theory crowd who favored Laenel Brainard was raging during that time. Simultaneously Lael Brainard outed 3 Fed board members for insider information which she set on for 5 years. Once Jerome Powell was renominated the Senate sat on his confirmation for 6 months installing the sign “ il Tempore” in front of him to intimidate him. In addition, Jaime Raskin the Senator of Jan. 6 committee fame tried to get his wife Sarah Blum-Raskin installed as Fed board member in charge of Bank Supervision to scrutinize banks regarding their lending practices to fossil fuel related companies. The Fed members have been treated like Supreme Court Justices just in a less publicized way. To describe a 1 year delay in raising interest rates in such a malign way should be considered Monetary Policy analysis malpractice.
You got it backwards.
Inflation was engineered by sabotaging supply chains, which in turn created a supply/demand imbalance, which caused prices to rise. Much the same way COVID "cases" were engineered to create the illusion of a pandemic, supply chain sabotage created the illusion of inflation. Then the Fed used this engineered inflation to increase interest rates, exactly like they used testing to increase cases. The point is to squeeze the middle-class, to make it impossible to own property, and to drive small businesses out of the market. It's a controlled demolition of democracy.