We cannot establish a real recovery and stronger economy without fully understanding what brought us to our current recession. In order to have a serious conversation about our economic ills, we have to look at the Federal Reserve (FED) and the harms it has made to our current monetary policy. Our currency is no longer backed by gold but by faith in it, making it a fiat currency. The FED centrally manages our monetary policy and interest rates with little to no transparency. Instead of the collective market determining what the interest rates should be, the FED sets the rate.
Years prior to the 2008 housing bubble burst and subsequent start of the recession, the FED set the rates artificially low encouraging the borrowing and spending of capital that banks and people did not have, promoting bad risks and malinvestment. During this time, the housing market began to balloon with artificial growth based on the illusion of capital. Other factors such as congressional housing regulations and the government agencies of Fannie Mae and Freddie Mac added to the bubble by encouraging these risks and malinvestment from consumers, but the Federal Reserve’s actions were the most dangerous in this process.
With the FED comes the ability to print money out of thin air, through quantitative easing that has been spent toward international banks, foreign governments, unnecessary programs and wars. We saw this demonstrated as the FED spent more than 2 trillion dollars during the bailout. These powers give the FED unchecked power to manipulate and devalue our currency, acting as an unlegislated tax. They have also created wider wealth inequality. This happens when printed currency is transferred from the wealthy to the middle and lower classes, as it loses its’ value only after being introduced in the market for a short period of time.
As your congressman, I will advocate the following to restore sound money, prevent federal induced malinvestment and promote a transparent government.
- A complete audit and dismantling of the FED and its’ ability to manipulate our economy. In addition, I would support legislation that casts a light into its’ secretive backroom dealings with domestic banks and foreign governments.
- I would support returning American currency to the gold standard. This act alone would make government spending policies more accountable to the American people and encourage sound economic investment. Allowing for the market to set the interest rates.
- Support legislation that examines and reforms Fannie Mae and Freddie Mac’s ability to encourage consumer manipulation.
The FED has established a massive Ponzi scheme, basing capital on nothing but illusion, and is currently attempting this trick again. It is time to treat the disease of our economic ills, not the symptoms. Dismantling this unconstitutional organization would stop the federally encouraged malinvestment, allow the market to liquidate its assets and prevent the debasing of our currency. It would establish sound money, economic stability and real economic growth based on capital, not a facade of credit that encourages out of control government spending.
Sign up for updates to stay in the loop and learn how you can be involved in your area.