Inflation is plaguing consumer markets, putting pressure on the Federal Reserve to raise interest rates to tighten the money supply. But as Rex Nutting writes in a MarketWatch column titled “Why Interest Rates Aren’t Really the Right Tool to Control Inflation”:
Continue readingIt may be heresy to those who think the Fed is all-powerful, but the honest answer is that raising interest rates wouldn’t put out the fire. Short of throwing millions of people out of work in a recession, higher rates wouldn’t bring supply and demand back into balance, a necessary condition for price stability.
The Fed (and those who are clamoring for the Fed to raise rates immediately) have misdiagnosed the problem with the economy and are demanding the wrong kind of medicine. …
Prices are going up because crucial inputs—labor, electronics, energy, housing, transportation—are in short supply. Normally, the way to solve this imbalance would be to give workers and businesses incentives to increase their supply. …
The Fed has been assigned the job of fixing this. Unfortunately, the Fed doesn’t have the tools to do it. Monetary policy works (in theory) by tweaking demand, but it has no direct impact on supply.
Filed under: Ellen Brown Articles/Commentary | Tagged: Bank of North Dakota, economy, Ellen Brown, Fed, FED REFORM, Federal Reserve, FEDERAL RESERVE ACT, Great Reset, IMF, Inflation, interest rates, WEF | 20 Comments »
WEB OF DEBT BLOG 
A Monetary Reset Where the Rich Don’t Own Everything
We have a serious debt problem, but solutions such as the World Economic Forum’s “Great Reset” are not the future we want. It’s time to think outside the box for some new solutions.
In ancient Mesopotamia, it was called a Jubilee. When debts at interest grew too high to be repaid, the slate was wiped clean. Debts were forgiven, the debtors’ prisons were opened, and the serfs returned to work their plots of land. This could be done because the king was the representative of the gods who were said to own the land, and thus was the creditor to whom the debts were owed. The same policy was advocated in the Book of Leviticus, though it is unclear to what extent this biblical Jubilee was implemented.
Continue reading →Filed under: Ellen Brown Articles/Commentary | Tagged: covid-19, DAVOS, Ellen Brown, EURASIAN JUBILEE, Great Reset, JUBILEE, MONETARY RESET, pandemic, Sergei Glazyev, WEF, WORLD ECONOMIC FORUM | 10 Comments »