Today the Federal Reserve increased its balance sheet by 3.2 billion dollars as it continued to purchase Treasury bills and other municipal debt in an attempt to calm investors and stabilize markets.
With no end in sight for such unprecedented monetary intervention by the Fed into private debt and equity markets, the obvious question emerges: when will this practice end, and what effect will this historic expansion have upon the American economy long term?
Speaking on deep background, a governor of a regional Federal Reserve bank spoke to this reporter regarding these complex issues, and the answers were surprising to say the least.
When asked if such massive intervention was indeed the proper policy- rather than allow businesses to fail in the natural manner designed by capitalism, the governor remarked that “allowing businesses to fail was not even on the table, not even considered, because if that were to ever happen, Trump would without a doubt lose to the election”.
Reminded that the Fed does not work for the President, and is in fact a private independent entity, the governor shot back quickly pointing out that “the President talks to the Chairman of the Fed 5 times a day, and Trump, not Powell, decides every move the Fed makes- Powell is just a figurehead with an expense account. I think they even had a threesome together with a Playboy centerfold.”
Moving on to the massive expansion of the Fed balance sheet recently, the governor laughed out loud before remarking that “money is an illusion, don’t you know that? It’s not real in any sense. We create money out if thin air, mostly digitally, and it’s incredibly easy to manipulate M1- the total money in circulation. With the introduction of computers, money has become a the greatest fraud in the history of civilization, and no one can possibly audit what we have done, because we enjoy independence from congressional oversight… we are like trust fund kids with daddy’s Platinum Amex, except he can’t find out and our charges never appear on his bill… because the money we spend and lend isn’t real, and will never be paid back.
To demonstrate how bad it is, I’ve personally paid for my house, my Porsche and the college tuition for my 6 kids from Federal Reserve funds I earmarked for some crap no body ever checks… it’s literally the worst agency in the Federal government.” At the end of the interview, the Governor offered me $30k in cash, and after a perfunctory refusal, I accepted it on the justification of journalistic research.