Read The American Enterprise Party Trilogy II: American Enterprise Manifesto:
The Federal Reserve isn’t a regulatory agency of the US federal government … it is a tacit regulator of its member banks. Their priorities aren’t for reducing the cost of capital for the benefit of the American Enterprise. See Article four for the impact of the Fed increasing the discount rate to member banks to penalize Wall Street for the subprime mortgage arbitrage. And how they caused the depression of 2007 with inordinate increases in the discount rate they charge member banks for capital. It then rippled through international monetary system with 12% LIBOR rates bankrupting many of the smaller economies.
Example: Deja Vu all over again. In the early 1980’s the Federal Reserve and Carter Administration blamed low mortgage rates on S&L banks and punished them with 23% prime rates thereby destroying the S&L banking system that had mortgages in circulation at rates of 6% that would default all their existing fixed rate mortgages, and put the so called 745 thrift banks out of business and convicted its principal owner of fraud. Big Brother rides again with the 2007 Arbitrage Depression destroying $30 trillion dollars in home owners’ equity and investors 401.k balances.
For the record, in 2005 after Greenspan’s retirement, a complacent President Bush and his Treasury Secretary Paulson allowed Fed Chairman Bernanke to raise the discount rate to member banks by 500% in 2005 to 2007 causing the housing depression that swept worldwide and sunk the housing market for a decade. Then blamed the housing market and Wall Street for the Great Recession (really a depression). The aftermath was a $30 trillion hit on 401k savings accounts as Americans’ housing values plummeted. (See Exhibit A the demise of the American liquidity and Article 4 Pop Goes the Monetary Balloon). This is history repeating itself.
Under President Trump we had a Fed with Janet Yellen as its Chairman sustaining the lowering of the Fed rates to 1% and on occasion a negative rate for the first time in memory. This stimulated the use of borrowed capital and more small business startups, reducing unemployment, improving wages, increasing employment of minorities and stimulating the economy as demonstrated by the Dow Jones exceeding 30,000 for the first time. How in the world could he lose the 2020 reelection by 8 million votes to Joseph Robinhood Biden and leave us in the hands of this incompetent, 47 years in the Senate, with no entrepreneurial skills, as President … who if left unabated running the country with a teleprompter, Pelosi House, Schumer Senate and a Obama speech writer will finally sink the Great American Enterprise.
Now, under President Biden’s leadership, the Democrats plan to transform America into a Socialist State, by proposing more social reform, and big business Pandemic stimulus, rather than infusing wealthy Big Unions, Big Media, Big Box, and Big Tech capital into small business creativity. We no longer can just stand for free enterprise; we need to invest in human capital in patriotism of American worker, as we did in the 1940s to win a war on our very way of life and economic principles.
We need to protect the entitlements that help our elderly and needy by investing money saved, in the stock market by reducing and eliminating the new entitlements that strap our great free enterprise model. The war on debt in the 2020 to 2030 decade is the same type of war. It’s to save the national standard of living, and allowing all of the people (the have-nots) to have an opportunity to succeed ... Jerry Rhoads, founder and CEO of AEP.
