Open memo to Donald Trump

To:  Donald Trump

From:  Murray Sabrin

At last night’s debate you missed an opportunity to make the case that income inequality, reoccurring bubbles and lower living standards for both low and middle-income families are the direct result of the Federal Reserve’s monetary policies.

At the next debate you should spend most of the night talking how the Federal Reserve has caused havoc in the US economy since it began operations in 1914.

You should take out a one-dollar bill and point out that it’s only worth a nickel today, because the Fed’s monetary policy has caused a massive decline in the purchasing power of the greenback.

You should also point out that the Fed’s manipulation of interest rates causes unsustainable booms, and when the economy overheats the Fed tightens credit triggering the inevitable readjustment in the economy, now euphemistically called a recession.

You should also point out that Hillary Clinton’s support of the Federal Reserve means that she endorses the massive redistribution of income from Main Street to Wall Street, because savers have been getting virtually zero interest rates on their savings since quantitative easing began in 2008.  Wall Street is the epicenter of crony capitalism in America.

You should point out that Hillary probably told the bankers in her secret presentations that when she becomes president the Fed will continue to keep the money flowing so they can reap enormous benefits from its cheap money policies.

You should also point out as you have in the past that the bubble we are in courtesy of Ben Bernanke and Janet Yellen will not end well for the US economy.

You should say when I’m president don’t blame me for the next economic downturn, which will be caused again by the Fed’s reckless monetary policies. Recessions are not caused by tax cuts, spending cuts, or deregulation of American businesses.

And point out that the Federal Reserve enables the federal government to take on massive amounts of debt because it keeps interest rates low thereby reducing the Treasury’s interest rate expenses on the national debt.

And this is quite important Donald that you point out, the Federal Reserve makes it easy for the federal government to wage undeclared wars by pumping up the money supply to help pay for the massive military industrial complex we have that Pres. Eisenhower warned us about in his farewell address in January 1961.

Donald, if you want to brush up on the Fed and monetary policy, here are a few suggestions for you to read before the next debate so you will have all the necessary responses to the moderators and Hillary’s cluelessness about how the Fed’s policies adversely affect the economy.

See the essays, articles and books about the Fed here.

I would start with Murray Rothbard’s What Has Government Done to Our Money?, and Robert Wenzel’s The Fed Flunks.

Pointing out the truth about the Federal Reserve, Wall Street and crony capitalism would seal the deal.  And you know all about dealmaking.

 

This entry was posted in Business cycle, Central banks, Crony capitalism, Donald Trump, Economy, Federal Government, Federal Reserve, Foreign policy, Hillary Clinton, Interest rates, Military-industrial complex, Money, Presidential campaign, Regulations, Taxes, Warfare state. Bookmark the permalink.

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