The Fed continues undermining Americans by creating a permanent underclass

Originally this article with my quotes ran by KTRH News in Houston.

​Under the Presidency of Woodrow Wilson in 1913, the Federal Reserve was born. The goal of it was simple, to help avert depressions and inflation, while preventing wealthy Americans from controlling financial markets at lower class expense. For the majority of its lifespan, it has sat mostly unimpactful, until the 1980s. With inflation raging out of control, then-Fed Reserve Chairman Paul Volker gave us tough love, and raised the rates along with restricting the money supply.

This led to some hard time initially, especially within the first 6 months, but it eventually helped quell inflationary pressures on the economy, and we transitioned into the economic prosperity of the Ronald Reagan days. But in the last two decades, the Fed has gradually sought to destroy the American dollar, releasing endless money into the economy all while their balance sheet balloons to outrageous levels.

It has culminated now in lower-to-middle class Americans struggling to make ends meet and buy basic necessities. Economist Vance Ginn says the many 'band aids' that the Fed has put on the economy, like monetizing debt, have hurt Americans more than ever.

"Everyone's cost of living has dramatically increased...and the Fed has directly contributed to that by how much they have manipulated interest rates through their balance sheet, and by increasing the money supply," he says.

For the longest time, the Fed kept interest rates has artificially kept he rates low to finance the dramatic government overspending. Then when the pandemic hit in 2020, the Fed created trillions to give away in stimulus checks, and to try and boost the economy, which has now essentially ruined it.

As mentioned above, the old chairman Paul Volker's ways were about creating a brighter long-term future, instead of short-term fixes. That, according to Ginn, is what we desperately need again.

"We need that style...he used to dramatically cut the money supply, which helped heal the pressures on the economy...so far, current Chairman Jerome Powell has not wanted to do that," he says. "Sometimes you need to have short term pains for long term gains."

Current chairman Jerome Powell was a Donald Trump appointee, but the former President has since grown weary of Powell, criticizing him more and more. Trump has made a living on the campaign trail bashing the Biden economy, which he has vowed to fix if he wins office again.

But to fix the situation might mean taking a hard look at Powell, and potentially replacing him.

"We need someone who understand the economy, and the influence the Fed has on our lives," he says. "We need to make sure there is a sustainable path forward...that will be pivotal for the first part of a Trump Administration in 2025."

As for who Trump would tab as a new Chairman is anyone's guess. But the parameters for what is needed are there.

"In order to have the Fed come in and make those needed major changes...you have to give someone the leeway to do that, whether Trump like it or not," Ginn says.

Trump would very much not like having to cause financial pain for Americans, considering how much he prides himself on winning at all costs. But he may not have a choice.

"I think he will be able to sell it to the people though...he can just blame it on Biden," he says.

But until then, as with just about every other aspect of our lives, the Biden Administration will continue keeping their thumb down on lower to middle class Americans.