If Donald Trump truly wants to fix the economy, he must shut down the Federal Reserve. If he just tries to patch up our current system, he will fail, because it has been fundamentally flawed from the very beginning. A little over a century ago, very powerful forces on Wall Street convinced Congress to completely restructure our financial system. An immensely powerful central bank known as the Federal Reserve was created, and the goal was to transform the U. S. dollar into a debt-based currency that would continuously be inflated and to create an endless debt spiral from which the federal government could never possibly escape. Sadly, they were successful on both counts. Since the creation of the Federal Reserve, the value of the U. S. dollar has declined by approximately 98 percent and our national debt has gotten more than 5000 times larger.
Americans tend to give most of the credit or most of the blame for the performance of the U. S. economy to our presidents, but the truth is that an unelected, unaccountable group of central bankers has far more power over our economy than anyone else does. The Federal Reserve has become known as ‘the fourth branch of government’, but unlike the other branches of government we are told that the Fed’s decisions are ‘above politics’ because they are ‘too important’. Fed officials fiercely guard their ‘independence’, and they fiercely resist any ‘interference’ from Congress, the President, or the American people.
Donald Trump can try to lower taxes and reduce regulations, but what he will be able to do to influence the economy pales in comparison to the immensely powerful tools that the Fed wields. The Fed controls interest rates, the Fed controls the money supply, and the Fed regulates the banks.
This post was published at The Economic Collapse Blog on November 16th, 2016.