Welcome to Another Edition of Groundhog Day
When is Congress going to do its job and abolish the Federal Reserve?
By Mark DeLuzio
When is Congress going to do its job and abolish the Federal Reserve? I know they have been busy acting "fiscally responsible" by raising the debt ceiling, so they haven't had the time to address the real root cause of our economic collapse.
Once again, the Fed is about to raise interest rates to quell the inflation they have created.
First, a simple economic fact: Inflation is defined as the expansion of the money supply. The more currency in circulation, the less valuable is every dollar. Currency is no different than any other product. Whenever there is an expanded supply of anything (cars, houses, tomatoes, etc.), these items are worth less. The result is higher consumer prices, which many confuse for inflation. Higher prices are a result of an expanded money supply.
The Fed has constantly "printed" money to feed the appetite of Washington politicians ON BOTH SIDES OF THE AISLE! Cutting government spending is the only way to bring back this economy. Fact: Most of the federal spending is unconstitutional!
To "fix" the inflation they have created, the Federal Reserve is again raising interest rates, which will squelch consumer and business lending. Debt lending is essential for a growing economy. As the Fed raises rates to address the inflation they created, they will squash economic growth and put us further into a recession (defined as two consecutive quarters of declining GDP).
The result? Unemployment, business shutdowns, and more government spending as they use their Keynesian mentality to "stimulate" the economy once again.
Kevin McCarthy and the other "fiscally responsible" Republicans, please do your job!
Did you ever see the movie Groundhog Day???
Note: the opinions expressed herein are those of Mark DeLuzio only and not our hosts, Chuck Warren and Sam Stone, or Breaking Battlegrounds’ staff.