Weekly Update --- The Federal Reserve: More Lethal than Coronavirus
Hello everybody and thank you for tuning into the weekly report. The fellas are more lethal than corona virus last week the Federal Reserve. It will keep interest rate at or near zero until the economy recovers from the government. Impose shut down following this announcement. Federal Reserve Chairman Jerome Powell urged Congress and the trump administration to put aside any concerns about the deficit and spend whatever it takes to stimulate the economy and Combat Corona virus. The Federal Reserve previously announced. It would make unlimited purchases of Treasury securities that's encouraging Congress and the president to increase spending and debt with some members of Congress talking about another multi trillion dollar stimulus bill and with president trump promising a two trillion dollar infrastructure plan as a way to get Americans back to work. It is obvious and not surprising that Congress and president trump gleefully agree with Powell's advice increasing. The purchase of the federal debt is not the only action. The Fed has taken in a desperate attempt to keep the economy afloat. Since the corona virus lockdowns began in early March the Fed has greatly expanded its balance sheet. The Federal Reserve has also launched an unprecedented program to loan money directly to businesses while some states are beginning to end. The lockout is it may be months or even another year before. All the lockdowns finally ended. It is unlikely that the economy we will completely recover after this shutdown and the economy was teetering on the brink of recession months before anyone heard of corona bars last September. A panicked fed began. Emergency infusions into the repurchasing market which is where banks make short-term loans to each other the Fed's balance sheet expansion also began in September. The Fed was also interest rates down before the corona virus panic and it will likely keep rates at or even below zero long after the crisis related to shutdown business subsides economic stagnation combined with zero or negative interest rates. Remove incentives for people to save this depletes the supply of private capital available to invest in businesses and jobs. The lack of private capital will put pressure on the Federal Reserve to maintain and even expand its new lending programs indefinitely. Each of the Federal Reserve's responses to the Carolina virus shutdown increases the distortions of the market caused by the Federal Reserve's meddling with the money supply and interest rates. These increased distortions guaranteed the inevitable. Crash will be much more severe than the current downturn. The one upside is that the next meltdown will likely lead to the end of the Fiat. Monetary system and thus the end of the welfare warfare state the only way to minimize the coming crisis to begin immediately. Unwinding the current system. The first step is to end. The lockdown and let businesses reopen and people. Go BACK TO WORK. Congress must then begin challenging the monetary policy by passing the audit the Fed Bill. Congress should also cut spending. Starting with ending are hyper interventionist foreign policy and bringing the troops home ending the welfare warfare state and the money system may cause some short term pain but that pain will be dwarfed by the long term gains in liberty peace and prosperity. Thanks for listening.