In this video, I discuss how the Federal Reserve has failed its mandates of maximum employment and price stability. Since the founding of the Fed in 1913, the U.S. dollar has been massively devalued, the labor force participation rate has fallen, the price of everyday goods has skyrocketed in U.S. dollar terms, and there has been massive consolidation in the banking industry, leading to monopoly type behavior and "too big to fail" dynamics.
As if that weren't bad enough, the Fed has engineered a series of rolling asset price bubbles, from the dot com bubble of the late 1990's to the housing bubble of the 2000's, to the "everything bubble" of the 2010's. In order to stop the everything bubble from popping in the wake of the slowdown caused by COVID, the Fed has been forced to print massive amounts of new money and use it to buy everything from Treasuries, to mortgage-back securities, munis, and even junk bonds. It may start actually even buying stocks one of these days, as the Bank of Japan has been doing for many years.
The Fed's money printing makes the rich richer, by driving up stock and real estate prices, while hurting the middle and working classes.
Fortunately, we still have gold and Bitcoin to protect ourselves from the Fed's money printing.
Not investment advice! Consult a financial adviser.
The Federal Reserve's mandate:
https://www.federalreserve.gov/aboutthefed.htmWhat things cost 100 years ago:
https://money.usnews.com/money/personal-finance/articles/2015/01/02/a-glimpse-at-your-expenses-100-years-ago100 year price chart of gold:
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chartNumber of U.S. banks in 1913:
https://eh.net/encyclopedia/us-banking-history-civil-war-to-world-war-ii/The Fed has created a rolling series of bubbles:
https://en.wikipedia.org/wiki/Dot-com_bubblehttps://en.wikipedia.org/wiki/United_States_housing_bubblehttps://thehill.com/opinion/finance/498573-the-federal-reserves-everything-bubbleThe Fed has contributed to growing wealth inequality:
https://apps.urban.org/features/wealth-inequality-charts/img/WealthPercentiles.jpgUS labor force participation rate:
https://fred.stlouisfed.org/series/CIVPARTUS debt clock:
https://www.usdebtclock.org/The Fed's holdings of Treasuries:
https://fred.stlouisfed.org/series/TREASTFederal debt held by foreign investors:
https://fred.stlouisfed.org/series/FDHBFINFed holdings of mortgage-backed securities:
https://fred.stlouisfed.org/series/WSHOMCBWatch the Fed's balance sheet grow:
https://fred.stlouisfed.org/series/WALCLFed promises to keep pumping gold and Bitcoin:
https://www.cnbc.com/2020/06/10/fed-meeting-decision-interest-rates.htmlhttps://www.cnn.com/2020/06/10/economy/federal-reserve-june-meeting/index.htmlMatthew Kratter i
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https://www.youtube.com/watch?v=_LHki0Pex9I