Deflating the Fed?

The Fed Is Swimming Dangerously In Uncharted Waters by Scott Minerd

Many people from all walks of life are terrified about what is happening at The Federal Reserve. The Fed’s balance sheet has dramatically increased over the last several years. The reason this has happened was because we have learned our lesson from the Great Depression — do nothing and things will get MUCH worse.

The author is right these are uncharted waters. Janet Yellen and the other central bank leaders have to be cautious about shrinking their respective balance sheets. The problem is that we don’t  have an example to go by. With the Great Depression we learned that an influx of capital can help stabilize the economy – even if just a little. We have not seen either a successful or unsuccessful reduction of capital. Therefore, all the concern is warranted.

With that in mind, you can’t live in fear. We might now have the direct experience to learn from, but we still have other lessons. Such as, care for the masses. Now granted our politicians don’t really do that for the most part, but … luckily not all of our officials are politicians. Keep that in mind. Some of our leaders do actually care and have morals.

Advertisements

Shutting Down the IRS?

Members Of Congress Push To Shut Down IRS Forever by Kelly Phillips Erb

This is one of the most ridiculous ideas Congress has ever had. This and ever other attempt to pass the blame to someone else. House Speaker Paul Ryan’s ideas are not much better. Repealing several bills, acts, etc. that benefit MANY Americans is not the answer either. How about they reinstate The Glass-Steagall Act? Or, maybe properly fund our many different departments and agencies? After all, government spending is one of the biggest (if not the largest)  money multipliers. Then again, reducing the tax code to less than 10 million words might help as well, but that is the duty of Congress.