By Chris Rossini
It shouldn't be this way, but The Federal Reserve "runs" the economy. America is not a free market, but has a group of central planners that manipulates our economic lives. The Fed sets into motion artificial booms and busts by counterfeiting dollar bills and meddling with interest rates. As the wild swings take place, presidents who happen to be in power during the booms pat themselves on the back as geniuses, while those in power during the busts are forced to grin and bear it.
Contrary to all the political entertainment found in the mainstream media, it's not the president who steers the economy with his "policies". The president is merely along for the ride that The Fed has put into place.
This phenomenon is nothing new. While colonial Americans were dabbling in the fraud known as central banking in the early days of our republic, they dealt with the same artificial booms and busts.
In 1797, Thomas Jefferson said, “The President [Washington] is fortunate to get off just as the [bank and paper] bubble is bursting, leaving others to hold the bag. Yet, as his departure will mark the moment when the difficulties begin to work, you will see that they will be ascribed to the new administration, and that he will have his usual good fortune of reaping credit from the good acts of others, and leaving to them that of his errors.”
Jefferson was taking over as the bubble was bursting. Washington could attribute the "good times" to himself, while Jefferson was stuck holding the bag.
Fast forward to modern times. How often do we (still) hear the nonsense that the U.S. economy was great under Bill Clinton?
Clinton's Administration coincided with The Fed's artificial Nasdaq boom. It was the Fed that created the euphoria which had to be followed by the pain of reality. In came George W. Bush, and he was stuck holding the bag during the bust.
The Fed would counterfeit its way out of the Nasdaq bust, and create another false euphoria known as the housing bubble. Of course, reality must always follow and the housing bust and bank bailouts would greet the new President Obama.
This time, The Fed would counterfeit money and credit like never before. All vestiges of sanity would be thrown out the window in order to save their precious experiment. Yet, despite the unbelievable creation of money and credit, the result has been a very impotent (yet still artificial) boom that has lasted until the present day.
Almost on cue President Obama comes out today to say:
"We're handing over the keys when the car is in pretty good shape"
Yeah, sure he is.
President Obama was lucky to ride the artificial upswing created by The Fed's counterfeiting. His genius "policies" deserve no credit whatsoever.
In fact, The Fed's counterfeiting has produced results that are so impotent that Democrats lost the White House, Senate, House, and The Supreme Court.
People vote with their wallets. If the "car" is in "pretty good shape," as Obama has the chutzpah to claim, the electoral rout would not have occurred.
But the vast majority of Americans do not understand that it's The Fed who pulls all the strings that count. The presidents are merely along for the ride. If it were up to the president's, they'd all like to be in power during the artificial boom if they could. But they can't.
Some must endure the bust....which brings us to Trump.
It seems extremely likely that President Trump will be holding the bag during the next downturn.
Will it all be Trump's fault? No. Will he be completely blamed? You bet he will.
Will President Trump vociferously place the blame where it belongs, on The Fed? Perhaps. That would be unprecedented.
In any case, when the inevitable bust occurs, the best that Trump can do is let it run its course. All of the malinvestments and debts that have been piled up during The Fed's artificial boom must be liquidated in order for the economy to stand on solid ground.
But sadly, it is the nature of politicians to try to avoid this as much as possible. They always seek to intervene and "do something" in order to keep the artificial conditions alive. Reality is painful, and Trump is surely going to want to be re-elected.
While nothing has happened yet, Trump doesn't seem like the type that will let the market clear out all the waste and malinvestments. He seems like the type that will try to "do something" in order to secure his re-election.
In any case, what America needs now more than ever is a free market economy with sound money. It needs a president that will pull the government albatross off of our backs. It needs to get rid of The Federal Reserve, which creates this entire mess in the first place.
As of this moment, it doesn't look good that any of this will happen in the short run.
But a silver lining remains. The Internet exists and the ideas of liberty are spreading quickly.
Amazing things can happen.
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