The Federal Reserve’s Operation Twist

The Fed announced yesterday it was going to buy long-dated securities in order to push rates down.  Yawn.  Well, that’s all well and good but as we have been writing on here for the last six years, the Federal Reserve does not control the economy.  Monetary policy will NOT fix this systemic collapse.  Mind you, in 2007 and 2008 almost everyone on Wall Street thought the Federal Reserve was going to save us from recession.  Recession?  Ahem.  Even if the Fed monetized all debt in the U.S., it would not fix this crisis.   It would simply give us more time to deal with the underlying root causes.  As we have said countless times, debt is but a symptom. 

Each new stimulus program announced by politicians and the Federal Reserve over the last twenty-odd years has had smaller and smaller time impact.  To the point where today, stimulus essentially is having just about no time impact.  The game of fraud and corruption is over.  We are never returning to the world of a few years ago. 

Corrupt government created this crisis.  A government with moral clarity is needed to fix it.   We need a restoration of democracy.  And that will only happen when we have true leadership.  In other words, public servants who understand what Lao Tzu wrote long ago. 

"A leader is best when people barely know he exits. When his work is done, his aim fulfilled, they will say, 'We did it ourselves.'."

Only the American people can rebuild our economy and get us out of this crisis.  Only by empowering all Americans economically within the framework of a democratic economic model can we see a return to prosperity in this country.  A model that allows those seeking merit to thrive.  (Merit being measured countless ways including ideas, creativity, hard work, business acumen, intelligence or whatever merit you are capable of sharing with society.  We all play a role in our success and we all have some merit to share in that success.) 

America and other free nations are great not because of politicians.  We are great in spite of them.  Politicians around the globe need to institute economic policies that will empower the cumulative abilities of a free society to excel.   But in order for that to happen,  politicians will have to give up control.  That will never happen.  I repeat never.  Only true leaders realize that it is not their ability that makes them great but the empowerment and recognition of the abilities of others that makes them great.   Leadership requires faith in your fellow man.  Faith that giving up control will reward your efforts well beyond your ego’s delusion of self-importance. (the basis of the need to control) 

It’s never about you.