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.

frankie

How to destroy our government...are you ready? Stop paying your taxes and your mortgage..end of the government, end of the elite, start of a new govrenment. And guess what you got a free house out of it! Back to farming for yourself and family..no more working (slaving) for the white man

December 17, 2008 at 1:35 pm

Christopher Hightower

Comment by 6ftrabbit To those advocating a return to the gold standard, you should understand that gold is a fairly useless, albeit pretty, metal. Can’t eat it or burn it in your car..... ______________ 6ftrabbit, The Gold Standard may not be perfect, but most of us that understand what sound money would do will take it. The alternative is the system we have that has lead us to where we are. The Fed can't do the job congress gave them the power to do; the market can do it without them. The problem with a fiat system is there is nothing to redeem your currency to, there are no checks on endless inflation and counterfeiting via printing of money and treasuries that leads to devaluation of the dollar and the loss of our purchasing power. You could benefit by reading a little history of money and banking and understand that gold became money for a reason and the reason was trust in it as value and accepted use for barter. The Federal Reserve Note is money by law (decree of a government via legal tender laws), there is a difference there. True you can't eat gold but you can't eat paper either. The Fed has endless printing ability, only God can make more gold. Our energy should be focused on legalizing a competitive currency. Let's see the Federal Reserve monopoly of money broken! Get the government and the government backed federal reserve out of banking and win a free country.

December 17, 2008 at 2:27 pm

Stan

Hey socialism is great, I can't wait for it. The reason being you get paid no matter if you do a good job or not, government gives all. It would be like working under a large union or better yet super size welfare.If your house is need of repair ,don't worry about it, the government will build you a new one. If you miss work, don't worry you still get paid. People wake up and enjoy this new gift.

December 18, 2008 at 10:14 am

Vincent

Cody have you not been paying attention......Obama is going to fix everything. :/

December 18, 2008 at 6:40 pm

jay

Hi Cody, For the first couple of weeks I didn't trust you because of that bad hair cut! After watching Happy Hour with Eric and Rebecca for a while I really appreciate your hatred of our new welfare economy. I didn't understand your contract law comments until today. Basically, you are saying honor your obligations and don't make someone else pay for one's mistakes. What a concept! Keep up the fight against the UAW. They may ultimately destroy the U.S. car companies before they destroy themselves. Its ok though because Toyota, Honda and BMW will pick up the slack.

December 20, 2008 at 1:22 am

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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