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Showing posts from March, 2018

Fed Must Stay Independent by Bailing Out the People

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/economics--politics/fed-must-stay-independent-by-bailing-out-the-people?post=121033&uid=4798

The Federal Reserve's independence is being threatened. The Fed brought this threat upon itself, because it did not trust Milton Friedman, but rather increased the wealth divide by pursuing QE instead. Had the Fed trusted Milton Friedman, it would have bailed out the people with Helicopter Money. At the very least, the Fed would have backstopped small  and medium business and pursued an expansionist policy with regard to the real economy and not just to save the banks.

The Fed is facing ideas put forth by Donald Trump and Steve Bannon. Bannon's ideas are very dark and I will comment further at the end of this article.

The Fed had already incurred the wrath of many because it liquidated the entire economy in the Great Recession as it took down the housing bubble. (It also liquidated the economy in…