{"id":57348,"date":"2016-02-05T05:00:02","date_gmt":"2016-02-05T11:00:02","guid":{"rendered":"http:\/\/www.shotinthedark.info\/wp\/?p=57348"},"modified":"2016-01-30T19:32:36","modified_gmt":"2016-01-31T01:32:36","slug":"almost-like-a-sequel-to-trulbert","status":"publish","type":"post","link":"http:\/\/www.shotinthedark.info\/wp\/?p=57348","title":{"rendered":"Almost Like A Sequel To &#8220;Trulbert&#8221;"},"content":{"rendered":"<p>Joe Doakes from Como Park emails:<\/p>\n<blockquote><p>The Federal Reserve was formed in 1913 for one purpose: to give the nation a stable money supply.\u00a0 That\u2019s it, nothing fancy, just provide a safe, secure, stable supply of money that will hold its value.\u00a0 We needed that, because the previous national money schemes all went bust and decades of economic chaos followed.<\/p>\n<p>&nbsp;<\/p>\n<p>After WW II, things looked pretty good and people had forgotten the old lessons.\u00a0 In the 1970\u2019s, Congress passed the Community Reinvestment Act to force banks to lend to unqualified borrowers and also expanded the Federal Reserve\u2019s mission to include social engineering through monetary policy: \u201c . . . effectively promote the goals of maximum employment, stable prices, and moderate long-term interest rates . . . .&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p>Remember the recession under Nixon, WIN buttons and the malaise economy of the Carter years?\u00a0 And the real estate crash we just had?\u00a0 Social engineering gone awry.<\/p>\n<p>&nbsp;<\/p>\n<p>The federal government still deficit spends but nobody will buy worthless US bonds so the Federal Reserve <a href=\"http:\/\/useconomy.about.com\/od\/monetarypolicy\/f\/Who-Owns-US-National-Debt.htm\">buys them with money that it prints up<\/a>.\u00a0 I suspect the reason that cash inflow isn\u2019t showing as inflation is the rest of the economy is in deflation but the government changed the formula to hide the fact its borrowing only partly offsets the slow-motion crash.<\/p>\n<p>&nbsp;<\/p>\n<p>Buyers have a fixed amount of money to spend on monthly house payments.\u00a0 It doesn\u2019t matter whether that $1,000 per month goes to interest or principal.\u00a0 The Fed is keeping interest rates low to prop up home values to benefit Baby Boomers wanting to sell McMansions, but it\u2019s killing retirees whose investment accounts earn nothing, cost management fees and are eroded by secret inflation.<\/p>\n<p>&nbsp;<\/p>\n<p>I suspect the Fed will raise interest rates when more Baby Boomers have retired and need the investment money.\u00a0 True, it\u2019ll crush home values but retirees won\u2019t care at that point.<\/p>\n<p>&nbsp;<\/p>\n<p>They tinker with the money hoping to reward certain behavior but if it crashes the economy again \u2013 as the other systems did before it \u2013 then we\u2019ll be standing around saying \u201cWhat we need is a safe, secure, stable supply of money that will hold its value.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Joe Doakes<\/p><\/blockquote>\n<p>&#8220;He who forgets his history&#8230;&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Joe Doakes from Como Park emails: The Federal Reserve was formed in 1913 for one purpose: to give the nation a stable money supply.\u00a0 That\u2019s it, nothing fancy, just provide a safe, secure, stable supply of money that will hold its value.\u00a0 We needed that, because the previous national money schemes all went bust and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-57348","post","type-post","status-publish","format-standard","hentry","category-socialism"],"_links":{"self":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/57348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57348"}],"version-history":[{"count":1,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/57348\/revisions"}],"predecessor-version":[{"id":57360,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/57348\/revisions\/57360"}],"wp:attachment":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57348"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}