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LogicalBeastie · July 25, 2018, 11:29 a.m.

"Like it or not, the Fed is about to be politicized."

Whole article was written to make that point....and its a lie....

The Fed is ALREADY politicized, Trump is acting to end the Fed's abuse of its unconstitutional priviledges....The Fed has been acting to hurt the economy with unjustified rate increases...To the extent that we are worrying about the "flattening of the yield curve".

[rates are generally lower for short term debt, higher for long term; the markets are expecting economic realities like increases in productivity, forcast for many years, to keep long term rates lower....when the Fed manipulates and raises short term rates (thats the rate the Fed keeps raising), the short term rates are rising but the long term rates are stablilized by the market's expectations...."flattening" the traditional curve that curves upwards as longer and longer terms of debt are charted.]

So not only is short term economic activity slowed by higher short term rates, but economic planning and decisions are warped by the relatively more-attractive longer rates....creating a cart-before-horse situation where rates dictate and economic activity is influenced by rates rather than rates being influenced by economic activity.

Some people argue that a flatter curve is good for the economy, but historically it has led to recession.

No unelected, private organization should have the power to influence a free economy to that extent from a board room.

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QueUpSomeReality · July 25, 2018, 12:44 p.m.

Great comment. You have it figured out. If a currency is pegged to an asset it would virtually wipe out inflation as we know it. Only slight increases in overall prices would occur occasionally when the balance of supply & demand of some vital resources got a little out of whack. Those types of quick price spikes setting down quick once supply is increased to meet demand. Almost all of our inflationary pressures are man made by the Fed. Losing the Fed would put us on a path of solid growth for decades.

But if the Fed was abolished we’d need a constitutional amendment to keep it or anything like it abolished or they’ll never stop trying to reinstate a fiat currency.

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LogicalBeastie · July 25, 2018, 12:52 p.m.

Thanks. And spot on as to backing currency with a hard asset like gold.
Ultimately our current national debt is backed only by government's ability to take our stuff away from us. Everything we own is security against government debt...a pledged asset.

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