The Federal Reserve Picking Winners/Losers During Crisis

YouTube has the video The Federal Reserve Picking Winners/Losers During Crisis.

If only Jimmy Dore could spend more time understanding Modern Money Theory.

Modern Money Theory lays the explanation out for all of us. People want to treat MMT as a mystery that can’t possibly be true. The Fed is controlled by Congress. Congress can change the rules if they want to. The way you vote for the people in Congress is your mechanism for controlling the Fed. If you don’t know that you want Congress to do, then you won’t be able to demand that they do what they ought to. Besides knowing that the Fed should be audited, Ron and Rand Paul have no clue about what to do with the information that will come out. They do not understand MMT.

If you are interested, there are posts about MMT all over this blog.

Even without the Fed, financial staying power helps the rich get richer. A great example is the Great Depression. As everybody was losing all their assets in the stock market crash, the dust bowl, and loss of jobs, they were forced to sell whatever they had at the proverbial fire sale prices. Those who had enough money to buy these assets cheaply saw tremendous gains in wealth when the economy recovered and the value of those cheaply bought assets skyrocketed. Every time the economy goes through such a cycle, the rich get richer and the poor gets poorer. The only thing that equalizes the situation is a highly progressive income tax system with top rates at 90% or more. There should also be wealth tax along with an income tax. Increasing amounts of wealth that are never turned into realized income gives the owner economic power. That is why an income tax alone is not enough.

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