Betrayed Americans

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Betrayed Americans

Paul Craig Roberts

Yesterday the Fed raised short term interest rates by three quarters of one percent, and the stock market rose. The stock market did not rise because of the rate hike. The stock market rose because the Atlanta Federal Reserve bank dropped its forecast for second quarter (ends June 30) GDP growth to zero — 0.0 — which means that technically we are in a recession.

As interest rate hikes worsen recessions, the stock market has concluded that Fed tightening is over. Soon the Fed will be lowering interest rates to fight recession and unemployment. The real question is: why did the Federal Reserve raise interest rates on the same day it knew the economy had descended into recession?

The Federal Reserve chairman, Jerome Powell disclaimed any intention of causing or worsening a recession by ratcheting up interest rates. But the real unanswered question is why did the Fed raise interest rates after the Fed knew we were in a recession unless the Fed wants a serious recession?

The unexplored question among economists is who does the Federal Reserve really serve. In the universities students are brainwashed that the Federal Reserve serves the public’s interest by maintaining noninflationary full employment via careful adjustments of the money supply. There is no historical record to support this claim, but this is what is taught. It is part of the propaganda that turns Americans into dumbshits.

Since QE began, the Federal Reserve’s balance sheet has risen from 800 billion dollars to 9 trillion dollars. This was the money creation that drove up bond, stock, and real estate prices and created a Forbes 400 list of nothing but multi-billionaires. If memory serves, when I was Assistant Secretary of the Treasury, there were only 2 billionaires on the 400 list.

The Federal Reserve has said that it is going to take the 9 trillion dollars that it pumped into financial assets back out of the economy. This means, if you believe the Federal reserve, that the Federal Reserve is going to take the money out of the rise in stock, bond, and real estate prices. If the Federal Reserve goes ahead with its plan, there will be a wipeout in paper wealth.

Pension funds will be hit hard if the Federal Reserve attempts to take out the money it poured into the support of the New York Banks, which meant into support of financial assets. This raises another issue. How did we have 12 or 14 years of the Fed pouring out money and still unable to reach the Federal Reserve’s target of 2% inflation, yet suddenly have 8%, 10%, or 12% inflation depending on the measure used? How does inflation jump from less than 2% to double-digits overnight?

Especially, how does this happen when the US dollar is rising. All great inflations, such as the German inflation, resulted from the collapse of the currency. The US dollar might well deserve to collapse, but it isn’t, or not yet. So what explains the inflation?

Is it made up, fake news to allow excess profits to sellers? Is it a product of the mindless Covid lockdowns that destroyed many businesses and disrupted many supply chains? In other words, the lockdowns reduced supply. If demand did not reduce correspondingly, prices rise. Is inflation a produce of Washington’s sanctions when the Wall Street Journal reports that Russia’s oil exports have increased by 300,000 barrels daily? Why are food prices going up? Why are some African countries allegedly experiencing starvation? Is it fake news, or is it the result of the Western world forcing countries out of being self-sufficient in food into producing one export crop and importing their food from the US? In other words, has “globalism” been successfully used to create a monopoly over food supply, a monopoly that is using the “Russian excuse” to raise prices?

Whatever your answers are, the only conclusions at which you can arrive is that “your government” is either totally incompetent or acting against your interests and those of everyone else in the world.

Are Americans too insouciant and gullible to be aware that they live in a world of lies created by their rulers and sustained by the presstitutes? Donald Trump brought just over half of US citizens into this realization, resulting in his two presidential elections. But the realization was not strong enough for the majority of the voters to prevent the corrupt and evil Democrats from stealing the election from Trump. Of course, it wasn’t just the Democrats wanting the powers of office for their perverted agendas of critical race theory, identity politics, transgender indoctrination, and other extraordinary assaults on the authority of parents and morality. We are living under a full scale assault by Democrats on normality, on the US Constitution, on truth, on morality.

Trump and the Republicans are themselves far from a reliable defender of freedom, free speech, and free thought. Republicans have supported the PATRIOT Act and all other legislation that erodes liberty in the name of security, just as Benjamin Franklin, a Founding Father, said would happen. Scare the Americans and they run into the embrace of the totalitarian state.

In addition to these powerful corruptive elements that are destroying the free world, we how have in addition the attacks on the indigenous white populations of the Western word, the fount of modern progress. White people are racists who must be replaced or exterminated, who first must pay reparations, who must first confess their sins against “people of color,” homosexuals and lesbians, feminists, transgendered, transpecies, and everyone else in the universe whether fanciful or real.

The doctrine is hardening everywhere in Western universities where the solution to humanity’s problems is the elimination of normal white people.

This despite the proven fact that the black slaves brought to what became the United States were slaves captured by the Black King of Dahomey, who sold the excess to Arab and Jewish slave traders. No colonist or 19th century resident of North America ever enslaved anyone. The slaves arrived enslaved. They were enslaved by the black victors who captured them in slave ares, enslaved and sold them.

Conservative defense of business no longer makes any sense. American corporations moved high value-added, high productivity jobs out of the country. When the goods and services they produce abroad are sold in the US, they enter as imports and worsen the US trade deficit. Thus the corporations have reduced the income growth of Americans and the tax base while worsening the trade deficit. That is, the corporations are acting against the interests of the country.

How does a country survive when its own corporations work against it and when its universities attempt to delegitimize normality?

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