Last week Biden sat down with Powell in a rare, but not uncommon, meeting between the Commander-in-chief and the head of America’s central bank.
Per Whitehouse transcript, Biden says:
It starts with a simple proposition: Respect the Fed and respect the Fed’s independence, which I have done and will continue to do.
The problem is that the Fed’s independence was compromised a long time ago. Both the Fed and Congress worked together during the pandemic to incorporate new companies for the purpose of skirting legislation, forming inflationary lending programs, as well as direct stimulus programs, spending trillions of dollars in the last two years.
The primary reason prices have drastically risen, or the dollar weakened, is due to the expansion of the money supply created by these programs, exacerbated by forcing businesses across the country to shut down. Of course, they will never rightfully acknowledge the current inflation problem being the result of government and central bank intervention.
After the proposition, he talks about the plan on tackling inflation:
Chair Powell and other leaders of the Fed have noted, at this moment, they have a laser-focus on addressing inflation, just like I am.
Since both Biden and Powell fail to understand the nature of inflation, they create narratives for the public, hence sometimes inflation is caused by Putin, sometimes it’s bottlenecks, and sometimes just a transitory phenomenon. We can’t believe they have a “laser-focus on addressing inflation” now considering they’ve never shown this before. The public hears narratives and finger pointing rather than credible discussion over why our currency is debasing.
In time, each new narrative is proven false. Just this week on CNN, Treasury Secretary Janet Yellen admitted:
I think I was wrong then about the path that inflation would take.
Consider the gross negligence perpetrated by one of the most decorated economists of our generation when Janet Yellen weaved a tale about “transitory inflation,” which really did turn out to be just a story more than economic theory.
The theme of failure continues. It’s important for the public to realize how central planning an economy ends; and it always ends the same, with mistakes, errors, oversight, falling behind the curve, et cetera, et cetera. When their follies, or worse, flat out lies are eventually exposed, the burden of failures by the planners falls on society to pay the cost.
It’s important to understand the system as a whole, how it’s designed for failure and how we allow this to happen. Rather than ask the same officials to do a better job of planning the economy, we must somehow rid ourselves of these planners entirely; especially considering “we the people” don’t need the planners. The planners need us.
Perhaps it was their recent failures in understanding inflation, coupled with month after month of high inflation readings that prompted the Biden-Powell meeting?
The day before the meeting, Biden had an op-ed statement in the Wall Street Journal, where he wrote:
First, the Federal Reserve has a primary responsibility to control inflation. My predecessor demeaned the Fed, and past presidents have sought to influence its decisions inappropriately during periods of elevated inflation. I won’t do this.
His message says nothing regarding the path forward and instills no confidence that the future looks promising. If they’re trying to convince us that all will be well, or that they’ve somehow learned from the past, they’re not doing a very good job. We should be concerned with Biden’s message to trust the process since it appears their short-run goal is to bring on a recession, crash the stock, bond, and housing market, and in the long run destroy the purchasing power of the US dollar. Should they accomplish this, the current system ensures none of the people who brought us to economic ruin will ever face any form of recourse.
