Does the Fed Even Know It’s Full of It?

Make no mistake about it. The Federal Reserve has always been a political body. The consequences are profound, and we need to react to them. Make no mistake about it. The Federal Reserve has always been a political body. The consequences are profound, and we need to react to them. [Wealth Daily logo] Does the Fed Even Know It’s Full of It? By Adam English Written Apr 05, 2021 Make no mistake about it. The Federal Reserve has always been a political body. From its existential fight over a century ago to today, it has served the interests of politicians. It was designed to do exactly that, but not in a direct fashion. The word juggling required to hoodwink the masses has taken many forms, but the very nature of the existence of the Fed makes it inevitable. The latest hot take from the newest member of the Fed’s Board of Governors is a prime example. Free Trading Webinar — Spots Are Filling up FAST We are just a few days away from a MASSIVE special event called ["]([How to Take Advantage of Wall Street's $23 Billion 'Secret Weapon.'"]( This is your chance to see exactly how top investment banks and hedge funds make outrageous profits... and how you can [copy what they’re doing]( and potentially make outrageous profits yourself. Attendance is free, but we do have to have a strict cap on the number of viewers... [so you need to CLICK HERE and claim your spot TODAY.]( Christopher Waller, the newest member of the board, recently gave his debut speech. Here is the part that deserves our attention: Because of the large fiscal deficits and rising federal debt, a narrative has emerged that the Federal Reserve will succumb to pressures to keep interest rates low to help service the debt and to maintain asset purchases to help finance the federal government. My goal today is to definitively put that narrative to rest. It is simply wrong. Monetary policy has not and will not be conducted for these purposes. To be honest, I don’t even know if he knows the difference. That isn't personal, though. Around here we have an internal mandate to attack policy, not people, when warranted. If you don’t know why that is a distinction, welp, that’s a whole different conversation our society should be having these days. Waller shows that he is a perfect fit for the Federal Reserve — he has the classic blind spot that the Fed’s board members have shown since its inception over a century ago — and it is not a coincidence. New board members are groomed for it. I have no doubt that no one in the government will pressure him. I also have no doubt that he wouldn’t have gotten a board seat if there was ever a question of whether pressure was required to stick to the “company line.” There are many forms of politics, and they aren’t limited to the winners of elections. There are many forms of collusion, and they don’t require direct interaction. Stock Trading Is Dead. Will You Be Left Behind? In recent years, regular investors have made less than half of the S&P 500 benchmark... and Vanguard says that average returns going forward will be even worse. Meanwhile, Wall Street elites are absolutely rolling in dough and the reason why is simple: Top hedge funds have a ["secret weapon"]( that gives them a BRUTAL unfair advantage. Average traders can’t hope to keep up... unless they also know what the ["secret weapon"]( is. Learn what it is and how YOU can put it to work in your own portfolio when you [CLICK HERE NOW.]( There is the veneer of independence and there are rules in place to insulate the Fed from day-to-day populism, but it was never meant to be anything else but political. Like the original version of the Senate, it was designed to coast through periods of change and preserve the status quo. That status quo is protected by how board members are selected. Big surprise, it is by politicians. Here is where Waller is right and wrong. Sure, the board will not cave to direct political pressure, but members sitting on it will never get there without adhering to the political status quo. The Federal Reserve Board may not “succumb to pressures to keep interest rates low to help service the debt and to maintain asset purchases to help finance the federal government” as Mr. Waller stated, but board members would not be on the board if their interests were not aligned. Consider the concept of the economic straightjacket — as one moves up in any organization, be it corporate or governmental, they are selected for their adherence to the status quo. The position they fill is bound by the limits considered tolerable by those in power. That means that regardless of party affiliation, the Fed Board has exclusively been picked by politicians with a vested interest in spending more than tax revenue generates for our entire lifetimes. Board members are also implicitly expected to insulate the Board itself, and the politicians that empower them indirectly, as well. Ignore the lip service — the bias is baked in. The Fed doesn’t need to bend its knee to politicians. The board members are more than willing to march boldly forward, hand in hand. Elon Musk’s Shocking Change of Heart The eccentric billionaire recently revealed something incredible... There’s a certain technology he believes will be much BIGGER than the electric car. He predicts it will grow even faster than it, too. This has nothing to do with batteries, 5G, or the internet of things. [Click here for the details.]( We live in a time when the new administration spent nearly the entirety of its 2020 revenue, $3.42 trillion, in one fell swoop in its first month in power. The goals may be noble, but the repercussions are undeniable. We live in a time when the same institutional interests groom their “most promising executives” and custom-build their compensation packages with the revolving door between banks and political appointments in mind. Of course everything looks fine according to the Fed. Of course Waller can say there is no direct pressure. The government grooms the Fed, the Fed provides the illusion of expertise to validate debt-fueled policies. One hand washes the other. Always has, always will. This is something we need to live with, unfortunately. We, as investors, want to build some wealth that is insulated from this ever-increasing debt tolerance feedback loop that steals from the future to fund the largesse of the present. I wish we didn't need to do this, but it is what it is. How to do that? We don't need to look far back into history. Ask people in South American countries that have imploded, or countries where the central bank threw the common folk under the bus, like in Iran, India, or Turkey. Ask them how to preserve some wealth when their currencies are being contorted to the point where they collapse. Ask them what to hold when the jig is up. You have to have exposure to something else that is worth something to others, regardless of the machinations and biases of a dozen people beholden to failing dogma and ignorant of their blind spots. Nothing can quite serve the same function as gold. [Gold is still the premier hedge]( for this brand of shenanigans, ensconced in the trappings of the ivory tower. These days, we need such a hedge, though it need not be a large part of our portfolio. We need something that other people want, preferably when ideologues are proven to be full of it. Luke has a great option for you and has been providing fantastic coverage over our weird, debt-fueled times. [You should listen to the man.]( Take care, [Adam English] Adam English [follow basic]( [@AdamEnglishOC on Twitter]( Adam's editorial talents and analysis drew the attention of senior editors at [Outsider Club](, which he joined in mid-2012. While he has acquired years of hands-on experience in the editorial room by working side by side with ex-brokers, options floor traders, and financial advisors, he is acutely aware of the challenges faced by retail investors after starting at the ground floor in the financial publishing field. For more on Adam, check out his editor's [page](. *Follow Outsider Club on [Facebook]( and [Twitter](. 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