The Cody Word
  • December 16, 2008 02:46 PM EST by Cody Willard

    The Federal Reserve Is Ruining Us and Must Be Destroyed

    The economy is in bad shape and as I’ve outlined repeatedly, the socialist Republican/Democrats that you guys keep voting into power are not going to be able to fix any of it. Remember always that the only thing that makes stocks go up in the long run is profits. And profits don’t come from the government. They come from you and me. And until the government gets at least somewhat back into the job of what they are supposed to be doing – mandating the rule of contract law – we’re not going to get back into a growth mode in this economy.

    We’ll get some rule of law back into this country…and it will happen sooner rather than later. And that means over the next 3,000 days or so, stocks will climb higher as profit growth will come from the empowerment that comes from knowing that the papers you sign matter and that the ones you don’t sign won’t come back to haunt you.

    That’s really the biggest kicker with all this white-collar welfare and corporate bail outs for Wall Street, Detroit and home owners – that all you rich people who had enough capital or enough access to capital to own banking stocks or houses or boats or cars or 70” plasma televisions for your trailer now want those of us who saved, rented and prepared to take advantage of the many, many mistakes you’ve made...instead we're forced to keep you in your stocks, bonds, funds, houses, boats and cars.

    We’re not cool with that and all of you who are working to create these wildly unfair governmental policies for irresponsible companies and people are the scum of the earth. You make us sick.

    Hey Ben Bernanke, have you ever bothered to read what the STATED mission of the Federal Reserve actually is? Here it is straight from federalreserve.gov –

    Mission

    The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

    Today, the Federal Reserve's duties fall into four general areas:

    • conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
    • supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
    • maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
    • providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

    And here’s what you explicitly told us you’re going to do to those of us who saved and rented and expected that we’d have an economic downturn or twenty during our lifetimes just like every economy always does as people get overgreedy at the top and overscared at the bottom:

    The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level. As previously announced, over the next few quarters, the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities and as conditions warrant. The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity.

    -

    Bold stuff there above is mine, of course.

    As a throwaway thought, I wonder why the idiotic, evil bureaucrats at the Fed bother to kinda quantify their moves as “HIGH level”, LARGE quantities”. I personally think that using the printing press that the private bank that the Federal Reserve has to buy even a MILLION DOLLARS of crap from people and companies who stupidly ignored all risks and levered themselves and their shareholders up in expectation of making profits but now have losses would be a HIGH level and LARGE quantity. I suppose the two trillion dollars that the Fed has stolen and given to the crooks running the banks that the Fed was supposed to be supervising and regulating might already be considered HIGH levels and LARGE quantities. It’s all relative if you’re rich and connected, I guess.

    The Fed is part of the problem. And yeah, partly because it's unconstitutional and because it's destroying our economy and society too, the Fed must be destroyed. The socialist Republican/Democrats who have total disregard for you and your hard work and savings and the rule of contract law that you’ve been respecting in this country your whole life but that you guys keep voting into office are obviously the biggest part of the problem. You can vote them out next time you get a chance.

Ryan

Hey 6ftrabbit, How about replacing the fed with, um i don't know, Congress? As it states in the Constitution. And then we replace our fiat money with gold and silver (legal money as dictated by the Constitution). US Constitution Article I section 8 "The Congress shall have power..." "To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures; "

December 16, 2008 at 3:30 pm

Patrick Greene

Right on. If it was just some mild socialism I could hang with that. But this business of firing up the printing press by the unconsitutional Federal Reserve (Not Federal, Not a Reserve) is a tax on the rest of us to bail out those who acted stupid or risky. The Argentine Solution is no solution at all. We will all pay down the road for the money they printed and gave out to God only knows who. Looks like they printed about $2 trillion so far, and they won't say who they gave it to. We are all f%&ked, the only way out is a governement collapse and start over. Otherwise we are all slaves to the Federal Reserve.

December 16, 2008 at 3:27 pm

DariusMDeV

I like the article, but can you help me understand this. The "mark" of socialism is redistribution of wealth, the "Spread the wealth" that Joe the Plumbfool famous for. You rail against socialist policies in your first and your last statement, yet the body of your article states that the rich at the top need to be made non-rich to pay for their sins. I guess to me that stings of a socialistic solution. I personally have no problem taxing the rich when they're refusing to spend. I have to spend 80-95% of what I make in a year, so should they. If they can't be bothered to buy what the working class in working to make, then tax em, but I prefer they just buy $5,000,000,000 in drywall.

December 16, 2008 at 3:27 pm

6ftrabbit

Cody, what would you suggest as a replacement for the Fed? It's not enough to just destroy something, it must be supplanted by something better or something worse will automatically come into being.

December 16, 2008 at 3:10 pm

Eric W

Sorry Cody. I do not have the time to vote with all the reality shows on TV and now I have been extra busy assembling a collection of Obama Presidential plates.

December 16, 2008 at 3:06 pm

about this blog

  • Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company. He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

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