The most important "duty" of the Federal Reserve is to finance the government. The Federal Reserve Act of 1977 mandates that the Fed work toward the goals of maximum employment, stable prices and moderate long-term interest rates.
How has the Fed done? As for maximum employment, the Fed is still struggling with this. As for moderate long-term interest rates, the bellwether 10-year Treasury bond has doubled its rate over the last year.
But for stable prices, the Fed has failed miserably. Despite the Labor Department cheating on their CPI index, the average family is struggling with persistently rising prices for the regular needs of every day life.
But here's the kicker, the Fed aims for consistent 2% inflation. Now get this, at 2% inflation, average prices will quintuple over a normal lifetime.
Is that what the wealthy know when they pay "outrageous" prices for intangibles such as art, collectibles, diamonds and New York apartments? Or ... Log in or subscribe to continue reading.
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