The Phaserl


6 Major Flaws in the Fed’s Economic Model

by Jim Rickards, Daily

The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar.

The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in the world.

The Fed may have some legitimate role as an emergency lender of last resort and as a force to use liquidity to maintain price stability. But, the lender of last resort function has morphed into an all-purpose bailout facility, and the liquidity function has morphed into massive manipulation of interest rates.

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3 comments to 6 Major Flaws in the Fed’s Economic Model

  • Jon Doe

    Rickards is a shill. DYODD.

  • willygroper

    truth woven with lies.


  • Sergio of the Jungle

    What legitimacy straw is Jim grasping at here? Is there a legitimate function for a bank to be empowered to criminally create money out of thin air in order to provide money to too big to fail governments or corporations, when there is nobody else flush enough or stupid enough to lend to them? Is that the legitimate role of the Fed of which you imply, Jim?
    Other than using “counterfeiting” as the term for fraudulently creating unlimited forgeries, I wish I could find the words that would succinctly describe the complete takeover of our money system that has been replaced with forged credit notes. It’s like having a trunk-load of Mona Lisa prints and peddling them off as originals.
    Jim of course knows this, he simply skirts the topic of counterfeiting money, which he knows that only the private for profit Central bank and its commercial franchise banks, with tacit government approval by providing the protection against criminal charges, have the audacity to so.

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