It’s time
to rethink the Fed. Their money printing
has resulted in too much inflation for over 100 years. In the 1960s, a decent
family income was $10,000 a year. By 2000, a decent family income was $100,000
a year. If we continue down the same path, by 2040 a decent family income would
be $1 million a year.
Fed policy
has discouraged savings. US consumers overspent and didn’t save, because they
knew every dollar they saved would be worth less. Their control of interest
rates resulted in boom-bust cycles and recessions. We can’t allow interest
rates to float to market right now, but we need to do that as soon as our
national debt is paid down enough to allow interest rates to rise..
The US
needs to move from a managed economy to a free market economy in order to
restore the law of supply and demand.
The reason is that consumers must be put in charge of determining
prices. Government is now in control of prices in too many industries including
healthcare, education and government itself.
All of these are overpriced and under-performing.
The Fed
needs to follow Austrian Economics and cast off all forms of Keynesian
Economics in order to allow this reform. Banks need to be responsible for their
own survival without the need for government bail-outs.
Large
Investment Companies with Index Funds like Vanguard need to offer index funds
of stocks that pay dividends. Pension Plans and 401K savers should not have to
create their own portfolios. They need better options.
Glass
Steagall needs to be restored to allow community banks to handle consumer loans
and savings. They should not be eligible for government bailouts. Dodd-Frank Bank regulations should not be
required in community banks. These are “main-street” banks and should operate independently.
Investment
Banks with hedge-fund investments in derivatives need to operate separately
from community banks and should be responsible for their own survival without
the benefit of government bail-outs.
The US
government needs to get out of the lending business. Fannie Mae, Freddy Mac and
Sallie Mae need foreclose their failing loans and sell their remaining loans to
private banks and mortgage lending companies.
Suicidal
laws like the Community Reinvestment Act of 1993 and HUD anti-discrimination
rules need to be repealed to allow lenders to refrain from having to give loans
to unqualified buyers.
There is a
case for ending the Fed, but if we can end bank bailouts and change their
ideology, it may be worth keeping its role in lending money to the banks. They
should not be free to increase the money supply by 450% in 8 years of QE ever
again.
Norb
Leahy, Dunwoody GA Tea Party Leader
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