Saturday, October 17, 2015

"We believe [the Feds] committed a crime."

"Larceny and fraud are the ones that spring to mind. Though we suspect a good prosecutor could tag them with counterfeiting and embezzlement, too. Throw in money laundering, conspiracy, and jaywalking – now you’re looking at 10 to 20 in the big house.

The essence of larceny is taking something that doesn’t belong to you without permission. Imagine the poor retiree. He has saved his money all his life. Now, in his twilight years, is he not entitled to his recompense?

But instead of earning a decent rate on his savings, he gets the ultra-low rate that is fiddled by the feds. He gets almost nothing. This is not just an abstract point to be argued by economists. It is theft.

Think of the aging person who had $100,000 saved in 2007. If he had earned 4% a year on his money, he would have earned $28,000 in interest since then. But if he got only 1% (or less), he would be short $21,000.

What happened to it?

Who took it?

There are two parties to robbery – the taker and the takee. We have seen what happened to the victims. They are too busy picking through trash bins to go to the Walmart website. But what about the takers?

They are busy too – lobbying… eating foie gras and caviar… and offering to save the world with increasingly radical monetary policies. They are, of course, those who pay net interest, not those who earn it.

The U.S. federal government is the biggest debtor in the world (in terms of the total dollar amount owed).

Who gained the most from the federales’ policy?

The federales themselves.

And who else?

The cronies, of course – Wall Street and corporate America. They were rich before the massive intervention began in 2008.
Now, they are much richer.

...The first thing we would undo is the Fed’s control of the financial system.

Let takees get the interest they are entitled to.

And let the takers get what they’ve got coming to them.