By Teka Lark (March 19, 2020)
The central banking system of the United States is the Federal Reserve System aka the Fed. According to Investopedia a central bank acts as the regulatory authority of a country’s monetary policy and is the sole provider and printer of notes and coins in circulation. The Fed is run by the board of governors. The current chairperson of the Fed is Jerome Powell an alumnus of Princeton appointed by Trump in 2018 the vice-chair is Richard Clarida an alumnus of Harvard, also appointed by Trump in 2018.
Do you know why the Feds couldn’t give you a $1.5 trillion? Because their job is to keep you scared and that kind of money would have put your mind at ease.
Why do you need to be afraid?
One of the Feds purposes it to keep unemployment rates low, but for a bondholder this is bad. When unemployment rates become low, then labor costs start to rise, because they have to pay people more to get good employees. You have competition, competition is only for poor people. That would be you, people who think they are middle class.
Another one of the Feds jobs is moderating long term interest rates.
As the unemployment rate drop, interest rates begin to rise. For bondholders, this Is bad, because their interest rates tend to be lower, though their bonds are so large they still make money if the inflation rate rises above their interest rates they lose money. Their profits get eaten with inflation.
As a result, the Feds look for an optimum unemployment rate that is low enough, so you don’t have social unrest, but high enough so the workers are frightened enough that they will work for low pay to have a job.
They call it maximizing employment I call it behavior modification. Maximizing employment means some people will always have to be underemployed and unemployed, to encourage certain behavior and mindset for the employed —for now.
Who are usually the unemployed, underemployed, Ph.D. driving Uber, in urban areas often Black people. Having a visually different, small, marginalized demographic example of what will happen if you get out of line is sadistic genius.
This is why you are thankful to have anything during a pandemic and feel that the government has no obligation to do anything, but make rich people money.
The selfishness here is embedded in our systems and institutions.