wallstreetexaminer.com / by Tara Clarke •
Millions of Americans assume the Fed acts in the nation’s best interest and that our nation has always had a Fed.
In fact, neither is true according to Money Morning Chief Investment Strategist, Keith Fitz-Gerald.
“The American Fed, as it operates today, is an insult to anybody who believes in economic and political freedom. In an era of globally linked finance, the very concept of the Fed is an abomination.”
You see, the Fed’s original, century-old purpose no longer applies to modern day markets.
Far worse than that, the Fed’s actions actually damage the U.S. economy…
Federal Reserve History 101
To understand how dangerous the Federal Reserve is today, we have to look closer and how it started…
Not many people realize this, but our nation hasn’t always had a Fed. In fact, the Fed we have today is our third attempt at a central bank. The first two didn’t work – “which ought to tell you something,” Fitz-Gerald noted.
Further, the greatest economic growth in our nation’s history happened between the Civil War and 1913 when there was no Fed and hard money policies supported industrialization. Between 1869 and 1879, for example, real GDP grew at 6.8% a year. Compare that to the anemic 1.5%-2% we have today after spending trillions.
But back to the Fed as we know it today…