Last week, the Federal Reserve released Welcoming Remarks, as part of a Fed Listens event held in Atlanta. The stated purpose of this initiative was to gather insights from select members of the community regarding economic concerns.
Governor Michelle W. Bowman admits many are struggling on Main Street:
I know that high inflation has been a hardship, especially for lower- and middle-income families, who spend the majority of their income on necessities.
Going on to say:
I am interested to hear the ways in which inflation and higher interest rates are affecting the day-to-day lives of our participants today.
This borders on mockery, as the Fed doesn’t serve the public at large. In fact, they are the central catalyst for the rise in prices, what they refer to as inflation.
They could utilize over a century’s worth of scholarship from the Austrian School of Economics to correct the trajectory; admitting the zero-sum game the Fed plays of increasing prosperity for one by decreasing prosperity for another, is failing us. This would never happen. Instead of creating trillions of dollars or suppressing interest rates as public policy, it would require them to refrain from market intervention entirely.
The Fed proudly embraces inherently flawed data analysis, faulty prediction systems, and a conspicuous use of anti-free market ideals. In their circle, it would be acceptable to refer to their economic beliefs as “orthodox,” closer resembling religious conviction than logical deduction.
Economists and media still utilize the Consumer Price Index (CPI) as a barometer of the health of a nation. It is increasingly apparent these inflation indexes do not adequately capture the true nature of inflation, as they fail to address how currency debasement pushes the populace into poverty and desperation, eroding the moral fabric of a society itself.
An ever growing sense of hopelessness stemming from inflationary monetary policies can be seen across CNBC news headlines:
Here’s why Americans can’t stop living paycheck to paycheck
The article states a staggering statistic: 61% of adults are living paycheck to paycheck. If true, it’s likely most citizens in one of the world’s wealthiest nations also have little to no savings.
Also noteworthy, in America, a sense of “comfort” begins with a salary nearing a quarter of a million dollars. A second survey found:
To feel ‘comfortable,’ Americans think they need a $233,000 salary and nearly $1.3 million for retirement.
For generations we’ve been led to believe inflation is necessary and that the Fed’s job is to ensure just the right amount for the benefit of society. Yet the Fed’s priorities hardly align with those of everyday people. The Fed claims computing inflation & employment data with interest rate & money supply decisions into highly complex formulas will help achieve their goal of economic prosperity. However, the real world has an unimaginable number of unforeseeable factors which their economic models could never comprehend, much less make credible predictions with any degree of certainty.
The only real certainty is that year after year, the purchasing power of our dollars steadily declines.
Alongside rising prices and rising rates comes rising debt levels:
Credit card balances jumped in the second quarter and are above $1 trillion for the first time
According to CNBC, part of this credit card debt is due to inflationary pressures coupled with “higher levels of consumption,” partially absolving the Fed.
Trapped in a perpetual state of desperation, most Americans live on the margin, forced to endure bouts of recession, depression, and the occasional currency collapse. Servicing a nearly $33 trillion national debt while also funding foreign wars and foreign aid are just a few of the obligations bestowed upon the American people.
Piecing the puzzle together, it adds up. If the Fed truly wanted to help, they would stop trying to help, as the Austrian school has been advocating for quite some time. The American people are the only ones powerful enough to do so. Let the market work itself out.
