2021-09-20

Why I Hope the Federal Reserve Buys Stocks

I hope the Federal Reserve announces it will buy stocks to prevent the inevitable collapse in stock valuations. This goes against everything I believe a central bank should be doing (such that they exist at all), but I think we'll be able to abolish the Federal Reserve if they engage in direct wealth transfer from the poor and middle class to the wealthy. The critics of the Federal Reserve understand that its inflationary policies benefit those with first access to newly created money. The Fed escalated this wealth transfer by funneling inflation into the stock market. By whatever means it is happening, we know that the Federal Reserve is at least encouraging capital inflows into financial assets, if not directly causing it by some mechanism. Many clueless people think this is merely a side effect of policy though, that the Fed is trying to help Main Street and the average worker. If the Fed openly funnels cash into the stock market, it will be clear to all but the most blue pilled that the Federal Reserve is an institution behaving as if its primary mission is the impoverishment of the American middle class and destruction of small business. We will have them right where we want them. At that point, if we cannot make abolition of the Federal Reserve a rallying cry that can generate 60 to 70 percent support among the people, if instead of hearing "Fuck Joe Biden" chants at college football games, the students don't switch to "Fuck the Fed," then fold it up and go home because we will never get a better shot to End the Fed.

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