How the Fed Messes It All Up

 James Anthony, the role of the Federal Reserve (the Fed) in the economy is examined critically. The article argues that the Fed creates an environment that leads to economic instability, primarily through its management of money supply and interest rates.

1. Federal Reserve's Mandate: The Fed is legally required to support maximum employment, stable prices, and moderate long-term interest rates. However, it often fails in these obligations by continuously increasing the money supply, which can harm the economy instead of helping it.

2. Nature of the Fed: The Fed is described as a cartel made up of bankers given special privileges to create government money. This situation allows them to earn profits without needing to collect deposits like traditional banks.

3. Impact on Interest Rates: The Fed keeps interest rates artificially low, which encourages unsustainable borrowing. Politicians favor this short-term growth, but it leads to job creation that cannot be maintained in the long run.

4. Price Inflation and Economic Delays: Increasing the money supply leads to price increases across supply chains. As prices rise, individuals delay necessary adjustments, exacerbating economic instability and further complicating the situation.

5. Rights and Value Creation: The article argues that the actions of the Fed violate individual rights and hinder the ability of people to create jobs that genuinely deliver value. Jobs should be sustainable, rather than dependent on temporary financial manipulations.

6. Importance of Money Stability: A stable currency is vital for economic health. The article suggests that historically the best form of money has been backed by tangible assets like gold, and that innovations in money should enhance, not detract from, its value.

7. Call for Change: The author emphasizes that as long as the Fed continues its current practices, economic issues will persist, and urges that changes need to be made to remove these privileges granted to the Fed.

James Anthony's article presents a detailed critique of the Federal Reserve's practices and their negative consequences for the economy. The points raised highlight the need for a reevaluation of how money is managed to ensure that it better serves individuals and creates real economic value. The discussion encourages a move toward more stable forms of currency that respect freedom and support sustainable job creation. 

https://www.americanthinker.com/articles/2025/11/how_the_fed_messes_it_all_up.html