Fiscal Policy vs. The Federal Reserve – Elizabeth Warren Imagines That The Federal Government Should Enjoy Low-Interest Rates regardless of The Damage Their RULES and Regulations are having on the Economy
Oddly enough, current Republican front-runner Donald Trump and Democratic Party Senator Elizabeth Warren imagine the Federal Reserve as an entity that should base its policies on what is best for the political party in power.
Before all the Trump supporters start complaining about the progressive economic illiterate that is Elizabeth Warren, I must remind Trump supporters that Donald Trump had a very similar stance regarding the Federal Reserve.
Trump who apparently had the best economy in the history of the world, also felt the need to bash Jerome Powell when Jerome Powell started raising interest rates. Now at the very least, Interest rates are pushing 6% before Elizabeth Warren started her complain-campaign, but none the less; these are the types of idiots in charge of running the economy.
At one point, I did think Elizabeth Warren had a good chance to become president but to my surprise, the likely most corrupt politician in U.S. history, Joe Biden won not only the Democrat nomination but the presidency, which gives me an indication of what phase of Democratic stupidity, America is in right now.
Typically things get a lot worse before they get better, so for myself, I imagine the Democrat Party looking for ANYTHING to blame for Joe Bidens failed policies. You have to remember that the Democrats have control over the presidency and the Senate, so they own this mess, and even with all the help from the mainstream media, which is hell-bent on protecting Joe Biden, the wealth effect news is offering little service to Joe Biden in the polls.
Now, you won’t find me blaming the Federal Reserve for everything; in fact, it may appear at times that I’m praising the federal reserve(even though I’m not); I stand by the position that DEMOCRACY is why we are where we are.
The DEMOCRATIC party via their corporate donors and special interest groups are pushing narratives that cheap energy should be more expensive and private property ownership should involve more government interference.
From an economic perspective, the policies being pushed by the Democratic policy are costly; in fact, it should be noted that without the GLOBAL strength and DEMAND of the U.S. dollar, the U.S. would be bankrupt.
With that said, the foreign exchange markets(Forex Markets) only care about how many U.S. dollars it can extract from the global banking systems. For this reason, the Federal Reserve has to raise interest rates, which is supposed to be an indicator to the Joe Biden administration that his FISCAL policies either better start paying dividends or he’ll have to abandon them as the economy DEFLATES.
Publish Your First eBook Today Click Here For eBook Designing and Ebook Publishing all in one
Because of this global demand for U.S. dollars, it’s in America’s best interest to pursue FISCAL policy that encourages SPENDING; Joe Biden is pursuing an agenda that is the pursuit of more government levers on economic activity and this COSTLY process from a financial point of view to DRIVE down costs, forces the Federal Reserve into a position of making the acquisition of U.S.dollars MORE costly, which is the reason in simplistic terms why the Federal Reserve is raising interest rates.
Now, let’s imagine what I thought was going to happen did happen. What I thought was going to happen was Negative interest rates, because for me consumer price inflation was inevitable and I thought in response, the Federal Reserve and other central banks would accelerate inflation, misinterpreting what was going on.
But to my pleasant surprise, the central bankers did the right thing to curb consumer price inflation. How long will this last? I don’t know! Both in Canada and the United States, the Conservative leaders are talking as if they will hire dovish central bankers to lower interest rates if they win, and I argue that if Conservatives take over that things won’t be so simple.
If you’re a President who refuses to enact AUSTERITY MEASURES, don’t bother embarrassing yourself
Donald Trump, similar to Canadian “Conservative” politicians, appear disinterested in austerity measures; instead, they want to be better managers of the current economic mess created by modern Left-Wing-Liberals.
Publish Your First eBook Today Click Here For eBook Designing and Ebook Publishing all in one
I like to remind people that WAGES are PRICE CONTROLS, and there’s a movement everywhere for public and private sector employees to get pay raises, now, the entire MARXISTS movement revolves around preventing DEFLATION in prices, which the Marxists imagine is how capitalists of the era were getting rich.
Prior to WAGE/PRICE controls, when the economy deflated, employers would tell their employees that either their wages would have to decline or they would be FIRED. Now, for the hard-working laborer, they imagined this as an unfair deal as they felt ENTITLED to their job, so these employees created unions and other Marxist organizations and fought hard for PRICE CONTROL/WAGE CONTROLS.
Wage/Price Controls, in my opinion, is why the gold standard was eventually abandoned. Because there’s a true MARKET cost to finding gold, and if the believers in price control have the power via the government to put an arbitrary price on the cost of gold discovery, you have built an unsustainable gold standard.
This political DEMAND for price controls led to the modern forex markets, which is mostly to the benefit of the United States, as most countries of the world would prefer NOT to be the worlds reserve currency, which in many ways allows a lot of countries to make the U.S. fight their wars for them.
I like to joke about the spy Chinese Spy balloons; the Canadian military as an example, required the U.S. military to shoot down a Chinese spy balloon in Canada. So let’s imagine for a second, the U.S. economy and military collapsed. Could a country like Canada protect itself from invasion? Suppose Russia decided to take certain Canadian territories; could the Canadian military fight back? The answer is clearly no, and it’s for reasons like this that countries prop up the U.S. dollar.
With that said, there’s still a breaking point, and I’d argue Joe Biden’s Democrats are pushing America to the brink of collapse if they continue to push their agenda. I also think the Republicans should be careful if they take over if they ignore all the damage the Elizabeth Warren types have caused because, make no mistake about it, if a future U.S. president is unwilling to enact Austerity measures, the global economy will collapse.
Austerity is not easy, as everyone observed Liz Truss, when faced with austerity measures, stepped down. No, the only Presidential hopeful on the Republic side that has a chance to win that I hear talking about Austerity is Ron DeSantis. Donald Trump still brags about preserving Social Security and Medicare, leaving the door open for EXPANSION for the welfare state.
Publish Your First eBook Today Click Here For eBook Designing and Ebook Publishing all in one
If the Elizabeth Warren, and Joe Biden types continue to win elections, it’s safe to say the U.S. is finished, as it’s pretty obvious that neither Joe Biden nor Elizabeth Warren has any basic understanding of the damage their fiscal priorities are having on the social cohesion of the United States.
Interesting times ahead