Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The income of the top 5% soared during Fed-enabled credit bubbles:
Since all these distortions originate from the Fed, the only solution is to abolish the Fed. Those who have absorbed the ceaseless propaganda believe that an economy needs a central bank to create money and manage interest rates.
This is simply wrong. The U.S. Treasury (a branch of government actually described by the Constitution, unlike the Fed) could print money just as it borrows money. Should a liquidity crisis squeeze rates higher, the Treasury has the means to create liquidity and make it available to the legitimate financial system.
All the Fed’s regulatory powers were power-grabbed from legitimate government agencies defined by the Constitution.
The Federal Reserve is the primary engine of income/wealth inequality in the U.S. Eliminate “free money for cronies,” bailouts of the “too big to fail” banks that own the Fed, manipulation of markets, the purchase of impaired private assets at high prices, and all the other tools of financialization the Fed wields to enforce its grip on the nation’s throat–in other words, abolish the Fed–and the neofeudal structure that feeds inequality will vanish along with the feudal lords that enforced it.
We don’t need to “fix” things as much as remove the obstacles that are blocking the way forward. The Federal Reserve is the primary obstacle to reducing income/wealth inequality. Those who support the Fed are supporting a neofeudal arrangement that widens the income/wealth gap by its very existence.