Fed to stop diddling the accounts?

[Bill Bonner’s Diary]( Fed to Stop Diddling the Accounts? By Bill Bonner Thursday, November 4, 2021 [Bill Bonner] BALTIMORE, MARYLAND – Hot off the presses comes this story from Politico: Fed set to begin pulling plug on massive aid to economy The Federal Reserve said Wednesday it will begin to slow its massive bond purchases later this month, the first step in removing its extraordinary pandemic-era support for the economy. The long-awaited move signals both optimism about the pace of job growth and wariness about price surges that have pushed inflation up to its highest level in decades. The central bank has been buying $120 billion a month in U.S. government debt and mortgage-backed securities, a process designed to supercharge its efforts to keep borrowing costs low for households and businesses. Fed chief Jerome Powell (our fellow student at Georgetown Law Center) insists that the Fed’s money-printing was an emergency program. If the Fed had not taken control of the economy in 2008… and again in 2020… it would be in a shambles, he believes. And by June 2022, the emergency will be over, says he. Recommended Link [Millionaire’s Big Prediction From Living Room Couch]( [image]( Teeka Tiwari – America’s No. 1 Investor – just made an outrageous prediction. Recorded live from his living room couch… He blasts Congress, reveals nasty truths about America… And reveals one technology set to radically change our nation. Already, 400,000+ viewers have checked it out. WARNING: This video may make you furious. [Watch His Urgent Video Now]( -- Bubble, Bubble… But what really happens when the Federal Reserve gooses the economy with printing-press money and artificially low lending rates? Tesla (TSLA) has been around for nearly 20 years; cumulatively, it hasn’t made a dime of profits from selling cars (it gets billions in government-ordered subsidies). Yet, its share price went up 1,270% since the beginning of Jan 2020. Shiba Inu (SHIB), [a comic coin]( gained 84 million percent in the last year. It’s now worth more than Japanese auto manufacturer Nissan (NSANY). A non-fungible token (NFT) from a “digital artist” named Beeple sold for $69 million at British auction house Christie’s. For reference, Vincent Van Gogh’s Vase with Fifteen Sunflowers masterpiece sold for $96 million (in today’s money) back in 1987. Stocks soar, while the economy that supports them limps along. Members of Congress, Fed chiefs, Wall Street honchos, and insiders get rich… while the public struggles to get by. [Featured: Introducing: The 3-Stock Retirement Blueprint]( Political Control The Fed’s key lending rate has been below zero, inflation-adjusted, for almost all of the last 12 years. And now, core consumer prices – measured by the Fed’s “trimmed mean” gauge – are rising faster than at any time in the last 31 years. Here’s the Breitbart report: A measure of underlying inflationary pressure on the economy rose to its highest level since 1990 in September. The Federal Reserve Bank of Dallas calculates that so-called Trimmed Mean Inflation rose at an annual rate of 5.1 percent in September, the fastest monthly pace of price acceleration in 31 years. Just what you’d expect, in other words. But some not-so-obvious things happen, too. Politics – whether it concerns forced vaccinations, teaching Critical Race Theory to children, or trillion-dollar boondoggles – has never been so vicious and divisive. Why? Because, when the government controls who gets what, it becomes more important to control the controller. More money is spent on political campaigns. And the other side is demonized, not as merely “wrong” or “misguided,” but as a mortal enemy… Recommended Link [TIME SENSITIVE: Jeff Brown issues a warning]( [image]( Jeff Brown just issued a warning about what’s happening in America. If you have any kind of money in the markets... Please watch his critical video message before it’s too late. [Click here for more info now.]( -- Braiding the Yarn It’s tempting to dismiss today’s nuttiness with a simple explanation: People go crazy from time to time. In St. Petersburg, Russia in 1917… in Berlin in 1936… in Peking in 1948 – it didn’t matter who you were, what you thought, or who you voted for… it was not likely to end well for you. But there’s more to it than that. Human society is an intricate weave of “[usual understandings]( as Russian president Vladimir Putin put it. Pull on one single thread… and the whole fabric comes apart. We’ve been tracing the yarn every day now for the last 22 years. And what we notice is that things that seem unconnected… or mere “acts of God”… are often woven together in braids of raw self-interest. [Yesterday]( we looked at how the SCD (Supply Chain Disruptions) the media is hysterical about were the result of the feds’ central planning. An honest economy depends on millions of fast-moving “measures” – most important, how much someone wants a product and how much he is prepared to pay for it – that the feds can’t possibly know. The more control they exert, the less well it works. And on [Monday]( we saw how civil society becomes uncivil. There, the links are harder to see. But when you can no longer trust the money… or the government… the “usual understandings” in the rest of the society seem to give way, too. [Featured: A message from Jeff Brown on the hottest investment in 2021]( Shortages of Everything In Russia, the Tsarist government multiplied the money supply by about 5 times (no one is sure) to pay for World War I. The ruble lost value. And war created severe supply chain disruptions, which led to shortages of food, especially in St. Petersburg. By 1917, thousands of people were in the streets raising a ruckus. The Bolshevik Revolution followed. In Germany, the hyperinflation of the early 1920s… along with supply chain disruptions caused by war, reparations, and the loss of the very productive Ruhr Valley… left Germans in a sour mood… easily exploited by left and right, with Hitler and his Nazis as the victors. In 1937, a dollar would buy you 3.4 Chinese yuan. By the time Mao Tse-tung took over in 1949, it would buy 23 million yuan. Naturally, prices were all over the place during those years… with supply chain disruptions – caused by money printing and war – leading to shortages of just about everything. So chaotic was the economic situation in China that most Chinese probably welcomed the Communist victory. Recommended Link [The 3-Stock Retirement Blueprint]( [image]( When most folks think about making money through the markets, they think “buy and hold.” They think “diversification.” And they think about investing in things like index funds. But one man has a different approach… It’s called the “3-Stock Retirement Blueprint.” It’s a way to play 3 stocks — yes, just 3 — and potentially make more money than you would by trading all the rest of them… Or by using an old-fashioned approach. Sound impossible? [Get all the details here]( — including the names and tickers of the three stocks. [Click here now.]( -- Everything Goes When the money goes, in other words, everything goes. Because money determines not just your wealth, but your place in the world… your status… your power… whether you owe or are owed… whether you sell your time or buy others’ time… …whether you are a have… or a have-not. But as we showed yesterday, the amount hardly matters. What counts is how it is gotten. And the more the elite controls the distribution of money… the more of it ends up in the hands of the undeserving elite. But wait… The Fed says it is going to back off. Jerome Powell says he is going to stop diddling the accounts that made him and the rest of the elite so wealthy. Is that really going to happen? Are we going back to a less political world? Stay tuned… Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Fed to stop diddling the accounts?). --------------------------------------------------------------- FEATURED READS [U.S. Oil Inventory Grows, Dropping Gas Prices for Now]( United States is the world’s largest oil consumer, and rising prices are pinching producers and consumers alike. President Joe Biden blames OPEC for high crude oil prices… but an increase in U.S. inventory has stalled that trend for now… [America Will Skip Out on the World’s Largest Trade Deal]( globe’s largest trade deal is expected to begin in January 2022, called the Regional Comprehensive Economic Partnership. For more on why this deal is historic, and who’s involved, [click here]( MAILBAG In [Tuesday’s mailbag]( dear reader Dwayne S. said the U.S should force manufacturers to reopen plants here…but others disagree… To force manufacturers to reopen their facilities would be taking away their freedom to make the best decisions for themselves. We could put high tariffs on everything coming into the country and use that money to promote small businesses. Which would be a beginning. We also don't have a manufacturing work-force any longer, the baby boomers are retired, and the younger generations are not desiring a job in a factory. Our general public, as a whole, does not understand the sacrifices a small business owner makes on a daily basis to be in business. The Unions desire as much of the profit as they can get for their membership with none of the risk. Regulations on business in this country have made it unreasonable to go into business today. An entrepreneur would be smarter to take their start-up money and invest in the stock market, or go to a casino (same thing). Win or lose, show up to their job on Monday morning, and would be financially further ahead. – Richard S. Force? Force?? When we think that we can fix things by forcing companies to manufacture here, we become the elitists who think they are so brilliant that they can control everything better than a free market. Just ponder for a while on the possible consequences of that suggestion. Better would be to set and enforce the ground rules and let the free market do its thing. – Brent T. Other readers share their thoughts on Bill’s essay, [“Bordering on the Absurd,”]( diving into Soviet-era Russia… and share their ideas on the demise of America… I hate to agree with Vladimir Putin, even in small part, but he's mostly right. His failure is that he didn't distill America's problems down to the basics of stupidity and racism. America's stupidity knows no bounds: The Federal Reserve… the unopposed power-grab of politicians… allowing profit-hungry corporations to exploit the populace and despoil the natural world… to name a few. Diversity, anti-racism, and equality are the much-needed, and legitimate, push backs against white-supremacist American fascism. Unfortunately, said pushback has also digressed into socialist demagoguery that denies the biological fact of male and female, mother and father, and the Biblical definition of a family; thus, compounding the stupidity. I think Putin was pulling his punches and being kind. – Dale A. I have enjoyed your articles for many years and have just purchased the book written by David Murrin called Breaking the Code of History after seeing a precis on YouTube where he gives an excellent resume of past and potential future. His view aligns with yours and the future does not bode well for western democracies. – David R. Lastly, readers continue to share their thoughts on Bill’s series, “God Speaks,” (catch up [here]( [here]( [here]( [here]( and [here]( The battle of good and evil are at the very root of what is going on now. Check out the Bible. We will know what times we are in when good is thought evil and evil good. The times are as in Noah's time. Lawlessness and contempt for our fellow man. The folks that are causing this are not stupid. But they are evil. And, it is certainly about money. Everything is about money and power. – Don H. Loved your trial, but realized there is no God vs. Man. As we get older, we begin to realize our humanity and that God created us. Whether He has done us a favor by giving us a free will, time will tell for each of us, as once conceived, we have eternal spiritual existence and faith is the only link to perpetual life and knowing whether we will be with God or otherwise. How we lead our earthly lives and treat our brothers and sisters, our fellow human beings, will be a test of how well we lived the best creed of my lifetime (the Jaycee Creed). Bill, I've read your book, follow your emails, and love your thinking. I think everything you say is consistent with the betterment of all of us. – James M. Are today’s problems really as simple as good versus evil, as Don H. belives? Is America headed toward “white-supremacist fascism,” like Dale A. says? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Fed to stop diddling the accounts?). IN CASE YOU MISSED IT… [To Any American Who Owns a Cell Phone]( If you own a cell phone, then mobile service providers hope you never get to see this video that could soon go viral. It was shot in downtown Denver by a multi-millionaire, who exposed sensitive truths about mobile phones and 5G. His experiment could strike a bad chord with mobile phone companies. But you’ve got to see what this man discovered and what it means for phone users in the weeks ahead. [Click here to see this video.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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