Progressive Ponderings: Suspicious Timing
by Joe Mayer
Certain institutions in our Democracy and economy were structured to shield them from political influence. Two of these are the U. S. Supreme Court and the Federal Reserve Bank (the Fed). The Supreme Court over the past decade has become a very political institution as it decided the Bush election in 2002 and this year granted super-humans (corporations) the ability to buy government.
This Pondering deals with the Fed, sometimes called the Banker’s Bank. On Wednesday of this week, the day after the elections, the Fed announced that it was going to purchase $600 billion worth of Treasuries (Federal Government Bonds) in order to put more cash into the system to reduce long-term interest rates and thus stimulate the economy.
Stimulate it did! Headlines blared “Dow and the S & P 500 reach new yearly highs.” These markets rose both Wednesday and Thursday.
Suppose you are a very wealthy investor who sent a few million secretly to front organizations for advertisements to influence (buy) this last election. It’s very probable that your equity (stocks) investments have increased, in just two days, more than the millions you spent to buy government. That’s effective investing!
Remember that “stimulus” was a bad word during the campaign season. Republicans used every means at their disposal to keep the economy from recovering, to keep citizens discouraged, angry and broke. Now that they’ve returned to power the Fed feels free to act.
The Fed board members are all appointed. They are all bankers. Possibly, they’re all Republicans. Banks own most of the Treasury Bonds to be purchased. Is there possibly a conflict of interest in their methods and their timing? Not if your value system is “for profit only.”
The Fed had been contemplating this purchase of government bonds for months. Its stimulus capabilities for the main street economy are questionable. Its stimulus capabilities for the high-rollers’ money is proven in two days.
Can you vote for or against the Fed? Of course not; remember, it’s a non-political institution.
Certain institutions in our Democracy and economy were structured to shield them from political influence. Two of these are the U. S. Supreme Court and the Federal Reserve Bank (the Fed). The Supreme Court over the past decade has become a very political institution as it decided the Bush election in 2002 and this year granted super-humans (corporations) the ability to buy government.
This Pondering deals with the Fed, sometimes called the Banker’s Bank. On Wednesday of this week, the day after the elections, the Fed announced that it was going to purchase $600 billion worth of Treasuries (Federal Government Bonds) in order to put more cash into the system to reduce long-term interest rates and thus stimulate the economy.
Stimulate it did! Headlines blared “Dow and the S & P 500 reach new yearly highs.” These markets rose both Wednesday and Thursday.
Suppose you are a very wealthy investor who sent a few million secretly to front organizations for advertisements to influence (buy) this last election. It’s very probable that your equity (stocks) investments have increased, in just two days, more than the millions you spent to buy government. That’s effective investing!
Remember that “stimulus” was a bad word during the campaign season. Republicans used every means at their disposal to keep the economy from recovering, to keep citizens discouraged, angry and broke. Now that they’ve returned to power the Fed feels free to act.
The Fed board members are all appointed. They are all bankers. Possibly, they’re all Republicans. Banks own most of the Treasury Bonds to be purchased. Is there possibly a conflict of interest in their methods and their timing? Not if your value system is “for profit only.”
The Fed had been contemplating this purchase of government bonds for months. Its stimulus capabilities for the main street economy are questionable. Its stimulus capabilities for the high-rollers’ money is proven in two days.
Can you vote for or against the Fed? Of course not; remember, it’s a non-political institution.
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