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Key among the objectives of the Federal Reserve are price stability and maintaining full employment.The graph above lends enormous credence to the call by Congressman Alan Grayson to either repeal the Federal Reserve Act or transfer its authority to the Treasury to coin the currency . Doing so would eliminate the inherent inflationary impact the Fed's credit policies have had and continue to have, on the dollar and the fundamental cause for the nations unpayable debt.
Half of the debt depicted below is owed to the Federal Reserve. The other half is owed to other sovereign governments and private institutions and individuals. The half owed to the Federal Reserve can be eliminated with two mouse clicks. The first click creates a new U.S. Dollar. The second click creates a cash amount in these new U.S. Dollars equivalent to the debt held by the Fed, which is in bonds issued by the Treasury to the Fed. The cash payment to the Fed eliminates the debt and replaces the value of the bonds, therefore, the swap is not inflationary because the money supply does not change. Key in this process is the liquidation of the redeemed bonds so that they are not rolled over as is current Fed practice.
This says it all. The middle class share of these profits has been near zero 1981-2011 (est.)
With such a severe decline in the growth of money it is not possible to inflate the economy with even a two trillion dollar Stimulus Package.
The Fed and major financial institutions are sitting on trillions in reserves for fear that law suits will require hundreds of billions in payouts for fraud perpetrated by TBTF banks. Therefore, no job creation and no real income growth for 99.5% of Americans.
With the Euro crashing China has no where else to park its money but the U.S.
After the Reagan/Bush/Clinton Administrations the average tax rate increases at the end of Bush II.
There was no attempt in any administration to increase consumption from renewal energy. Thank you very much fossil fuel freaks.