Will the dying warfare-welfare state be replaced by liberty...or tyranny? Will the dying warfare-welfare state be replaced by liberty...or tyranny? Will the dying warfare-welfare state be replaced by liberty...or tyranny?
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Fed's Misleading Claims
00:03:56
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| Hello everybody. | |
| Thank you for tuning in to the weekly report. | |
| Economic storm clouds gather, but ending the Fed provides hope. | |
| The Federal Reserve recently increased interest rates to 1.75%. | |
| This is the highest interest rates have been since 2008, but it still leaves rate at historic lows. | |
| While the Fed says economic growth justifies future rate increases, an honest examination of the economy suggests that future rate increases are unlikely. | |
| The Fed's claim that the economy is strong is based on misleading government statistics. | |
| For example, the official unemployment rate understates true unemployment by not counting those who have been looking for work for a long time. | |
| According to John Williams of Shadow Government Statistics, the real unemployment rate is above 20%. | |
| Government figures also understate the rate of inflation by pretending that you are not negatively impacted by inflation if you can still buy hamburger when you cannot afford steak. | |
| Shadow Stats estimates that the real rate of inflation is as much as four times higher than the official rate. | |
| President Trump's tariffs will further weaken the economy, while export-driven industries, including manufacturers that rely on imported materials, will be particularly hard-hit. | |
| The tariffs, combined with the inevitable retaliation from other countries, will impact all sectors of the economy. | |
| A global trade war could also lead other countries to stop buying U.S. debt instruments, increasing pressures on the Fed to keep rates low. | |
| Since Republicans have held control of the White House and Congress over the last year, federal spending has increased 12.9%. | |
| Clearly, those in Congress serious about reducing government spending are few and far between. | |
| The sad fact is that both major parties are happy to increase welfare and warfare spending, although many Republicans pretend to oppose deficits when a Democrat sits in the White House. | |
| This puts tremendous pressure on the Fed to keep rates low so as not to increase the federal government's already high interest payments. | |
| This cannot last forever. | |
| Eventually, the combination of a spendthrift Congress and a print-happy central bank will cause a major economic crisis. | |
| This crisis will herald the end of the welfare warfare state and the fiat monetary system that sustains it. | |
| The only question is whether the existing system will be replaced by a free market and limited constitutional government, or we will complete our descent into totalitarianism. | |
| Fortunately, more Americans are becoming aware of the freedom philosophy and demanding that government roll back the welfare warfare state and rein in the Fed. | |
| Many are demanding protection of their right to opt out, not just from government programs like Obamacare, but also from the Federal Reserve system. | |
| For example, Wyoming recently joined Arizona in passing a law recognizing gold and silver as legal tender. | |
| Citizens of these states are now able to protect themselves from the coming dollar crisis by using what has historically been considered real money. | |
| At the federal level, the movement to audit the Fed remains strong. | |
| As the failure of Keynesianism becomes more apparent, the movement to audit and end the Fed will grow in size and strength. | |
| Hopefully, this movement will ensure the end of the welfare warfare state and the fiat currency system, as well as lead to a new era of liberty. | |