Democratizing the FED

A nifty graph showing the correlation between the private Federal Reserve system printing money out of thin air via their Quantitative Easing (QE) program and the stock market. The connection comes from Fed money at dirt cheap interest rates being used by corporations to buy back their own stocks — giving the impression that companies are doing well when demand for their stuff is down since people aren’t buying (due to low wages, rising debt, fear of job loss, etc.). The fact that the Fed has almost ended QE while the stock market is down is no coincidence.

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The fundamental problem of the Fed is that it’s beholden to the corporate crowd, especially financial corporations. Whatever will most benefit financial corporations is the road map of its future actions, rather than serving the public good. Providing cheap money for banks to speculate and corporations to buy back its own stock — thus deceiving investors that companies are stronger than they actually are — is politically and economically detrimental.

It’s time to democratize the Fed, placing it under public control. This is one of the core proposals of previously proposed legislation called the National Emergency Employment Defense (NEED) Act. http://www.monetary.org/wp-content/uploads/2013/01/HR-2990.pdf

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