Moving Beyond Elitist Systems and Reimagining Monetary Policies

13 Dec 2023 by rate3

Introduction:

We are not living in an era defined by the simplistic narrative of good versus evil. Instead, we find ourselves amidst a profound period of generational change, where traditional, conservative systems across government, society, and the economy are being replaced by dynamic, technology-driven alternatives. This shift necessitates a reevaluation of entrenched power structures, particularly those perpetuated by old ruling elites using inherited privilege and opaque systems under the guise of representative democracy.

The Epoch of Generational Change:
The current era is characterized by a transformative generational shift, marked by the ascendancy of fast-paced, technologically oriented systems over their older counterparts. This evolution spans various facets of society, including government, social structures, and economic frameworks. The rigid systems of the past are being supplanted by more adaptive, innovation-driven models that respond to the rapidly changing demands of the modern world.

2. Dismantling Old Elitist Structures:

The core challenge lies in dismantling the old, elitist structures that have prolonged their dominance through inherited privilege and the manipulation of established rules. Representative democracy, ostensibly designed to empower the people through elected representatives, has been co-opted by elites who prioritize self-interest over the welfare of the populace.

3. The Federal Reserve as an Exemplar of Elitist Power:

A glaring example of entrenched elitism is the Federal Reserve, wielding monopolistic control over money creation, commonly known as “printing money.” This power has been wielded to extend the absolute authority of ruling elites, perpetuating generational wealth and influence in both the European Union and the United States.

4. Debunking the Myth of Inflation Victory:

The celebration of the Federal Reserve’s “victory over inflation” is exposed as a fallacy upon closer inspection. Several indicators, such as persistently high employment rates and the admission by the Federal Reserve itself that it cannot control essential sources of inflation, reveal the flawed nature of these claims.

a) Employment Rates: The continued high employment rates indicate that the Federal Reserve lacks influence over corporate executives, who prioritize market control over workforce welfare.

b) Admission of Powerlessness: The Federal Reserve’s acknowledgment in 2022 that it cannot impact the real sources of inflation, particularly energy and exported goods affected by geopolitical events and global crises.

c) International Examples: The experiences of countries like Japan and Sweden, one embracing economic activities without strict lockdowns and the other maintaining negative interest rates, demonstrate that alternative approaches can yield similar economic outcomes without the drawbacks seen in the EU and the USA.

4. Expanding on the argument:

It becomes evident that the Federal Reserve’s policies, designed ostensibly to balance the negative effects of the free market system, are, in reality, a Placido-pill that sustains aging individuals’ unwarranted powers within the regulated-market system. This sustenance perpetuates a status quo where a select few wield tremendous influence without contributing positively to the overall economy.

a) Regulated-Markets as a Sustaining Pill for Elites: The regulated-markets system, underpinned by the Federal Reserve’s policies, acts as a life-extending elixir for entrenched elites. Instead of fostering a fair and competitive environment, the system provides a cloak for the preservation of power, shielding aging individuals and their families from the natural evolution that should occur in a dynamic society.

b) Ineffectiveness in Influencing Key Economic Indicators: Despite its purported role, the Federal Reserve demonstrates a stark inability to influence critical economic indicators. Stock markets, inflated asset prices, and the costs of major resources and energy remain largely immune to the Fed’s interventions. This lack of influence exposes the institution as an ineffective regulator that fails to curb the excesses of the privileged few.

c) Artificial Suppression of Salary Rises: The Federal Reserve’s policies, rather than promoting economic well-being, artificially suppress salary rises, a vital factor in improving the livelihoods of the majority. This deliberate suppression hampers the ability of individuals to experience real growth in their standard of living, perpetuating economic inequality and social unrest.

d) Destruction of SME Lending Market: The adverse effects extend to the small and medium enterprises (SMEs), which are the lifeblood of innovation and economic dynamism. The Federal Reserve’s policies contribute to the destruction of the lending market for SMEs, stifling their growth potential and hindering the very source of innovation and job creation that should be driving the economy forward.

e) Selective Impact on Inflation: Remarkably, the major sources of inflation — governments and large corporations — are largely untouched by the Federal Reserve’s interventions. This selective impact raises questions about the institution’s true purpose and its alignment with the interests of the broader society.

f) The Federal Reserve as a Dangerous Economic Weapon: In light of these observations, the Federal Reserve emerges as a dangerous economic weapon wielded by the elite to suppress any rising, technologically driven opposition from the grassroots of society. Its policies serve as a tool for maintaining control indefinitely, irrespective of the risks posed to the stability and progress of our civilization.

5. Urgent Need for Systemic Change:

The conclusion drawn from this analysis is the urgent and comprehensive reforms are necessary to dismantle this distorted system. Relying on the Federal Reserve as the guardian of economic stability has proven detrimental to the majority and advantageous only to a select few. A paradigm shift towards transparency, accountability, and a more equitable distribution of economic power is imperative for the prosperity and sustainability of our society.

The first step involves providing absolute independence to the 12 regional banks, gradually transferring powers to independent banks and credit unions. Finally, a radical shift is proposed by completely abandoning the government and bank monopoly on “printing money” and embracing a system of “creating quantitative easing from the bottom,” allowing individuals to issue their personal IOUs.

Conclusion:

The epoch of generational change demands a reevaluation of established systems that perpetuate elitism and hinder progress. The Federal Reserve, as a symbol of entrenched power, must be restructured to foster independence and transparency. The proposed shift towards a decentralized monetary system reflects the need for a paradigm change, ensuring that power is distributed equitably and that financial systems align with the dynamism of the contemporary world.