{"id":1630349,"date":"2022-09-02T06:34:49","date_gmt":"2022-09-02T10:34:49","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1630349"},"modified":"2022-09-02T06:35:16","modified_gmt":"2022-09-02T10:35:16","slug":"federal-reserve-blames-congress-for-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-blames-congress-for-inflation\/","title":{"rendered":"Federal Reserve Blames Congress for Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-reserve-blames-congress-for-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1630349&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Federal Reserve has some not-so-comforting inflation news for Americans: They can\u2019t tame it, and it isn\u2019t their fault.<\/p>\n<p>The current \u201cincrease in inflation,\u201d says a <a href=\"https:\/\/www.zerohedge.com\/markets\/fed-paper-admits-central-bank-cant-control-inflation-finger-points-federal-government\" target=\"_blank\" rel=\"noopener\">new report<\/a> published by the Kansas City Federal Reserve, \u201ccould not have been averted by simply tightening monetary policy.\u201d<\/p>\n<p>The Fed was established in 1913 to promote economic stability by protecting the value of the dollar.<\/p>\n<p>If they can\u2019t do it, who can?<\/p>\n<p>That\u2019s where things get complicated, as you\u2019ll see.<\/p>\n<p>Skip this next excerpt if you like, because I\u2019ll have a TL;DR version for you just below it.<\/p>\n<p>The report, written by Leonardo Melosi of the Chicago Fed and John Hopkins economist Francesco Bianchi goes on to say:<\/p>\n<blockquote>\n<p>Trend inflation is fully controlled by the monetary authority only when public debt can be successfully stabilized by credible future fiscal plans. When the fiscal authority is not perceived as fully responsible for covering the existing fiscal imbalances, the private sector expects that inflation will rise to ensure sustainability of national debt. As a result, a large fiscal imbalance combined with a weakening fiscal credibility may lead trend inflation to drift away from the long-run target chosen by the monetary authority.<\/p>\n<\/blockquote>\n<p>Here\u2019s the TL;DR: Inflation is raging because Congress is spending money we don\u2019t have, is producing trillion-dollar deficits with no end in sight, and has no intention (much less an actual plan) of reining it in.<\/p>\n<p><a href=\"https:\/\/schiffgold.com\/commentaries\/fed-paper-admits-the-central-bank-cant-control-inflation-finger-points-at-federal-government\/\" target=\"_blank\" rel=\"noopener\">Michael Maharrey<\/a> adds:<\/p>\n<blockquote>\n<p>Make no mistake, the US government is spending far beyond its means. Although the budget deficit is shrinking as emergency pandemic spending programs wind down, the Biden administration continues to spend about half-a-trillion dollars every single month, piling onto the ever-ballooning deficit.<\/p>\n<\/blockquote>\n<p>The current \u201cplan\u201d is that Congress will spend nearly 50% more than it will take in, month after month, year after year, and pretend that\u2019s sustainable.<\/p>\n<p>Meanwhile, our idiot POTUS puppet conjured up perhaps as much as another trillion dollars in transfer payments from the poorest Americans to the richest, cloaked as \u201ccollege loan debt relief.\u201d<\/p>\n<p>Can he <em>do<\/em> that? Well, who\u2019s there to stop him?<\/p>\n<p>But back to inflation \u2014 and let\u2019s forget about interest rates.<\/p>\n<p>Here\u2019s what that Federal Reserve paper doesn\u2019t say: If Congress is the husband who\u2019s drunk on spending, then the Fed is the codependent wife driving him safely home from the bar each night.<\/p>\n<p>Congress could never get away with multi-trillion dollar deficits if they weren\u2019t enabled by the mad money minters at the Federal Reserve.<\/p>\n<p><em><strong>Recommended:<\/strong> <a href=\"https:\/\/pjmedia.com\/vodkapundit\/2022\/08\/31\/california-warns-here-come-the-blackouts-dont-charge-your-car-n1625210\" target=\"_blank\" rel=\"noopener\">California Warns: Here Come the Blackouts, Don\u2019t Charge Your Car<\/a><\/em><\/p>\n<p>When Congress wanted to provide \u201crelief\u201d from the totally unnecessary COVID-19 lockdowns, Minneapolis Fed President Neel Kashkari went on <em>60 Minutes<\/em> to assure people that the Fed has basically an \u201c<a href=\"https:\/\/beincrypto.com\/federal-reserve-claims-it-has-infinite-amount-of-cash\/\" target=\"_blank\" rel=\"noopener\">infinite amount of cash<\/a>.\u201d<\/p>\n<p>Two years later, you can still feel the \u201cassurance\u201d every time you buy groceries.<\/p>\n<p>The point is, every time Congress wanted to spend a couple trillion dollars we didn\u2019t have, there was the Fed to monetize it \u2014 IE, roll the digital printing presses 24\/7.<\/p>\n<p>Here\u2019s the Fed\u2019s balance sheet since 2000:<\/p>\n<\/p>\n<p>When the Fed owns assets \u2014 the bank\u2019s balance sheet \u2014 it\u2019s because they bought it. Where does the Fed get the money to buy things?<\/p>\n<p>They print it. Convenient for them, no?<\/p>\n<p>Since March of 2020, the Fed has bought $5,000,000,000,000 worth of assets using funny money. They just injected craploads of new dollars into circulation, in no small part to cover Congress\u2019 largess.<\/p>\n<p>Cut. It. Out.<\/p>\n<p>So long as the Fed can print money at will, there\u2019s absolutely nothing to stop Congress from spending money we don\u2019t have.<\/p>\n<p>The fate of the world\u2019s largest economy is in the hands of a codependent couple. One has no interest in the welfare of the country as a whole, and the other apparently has no interest in taking responsibility for its part in letting that happen.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve has some not-so-comforting inflation news for Americans: They can\u2019t tame it, and it isn\u2019t their fault. The current \u201cincrease in inflation,\u201d says a new report published by<\/p>\n","protected":false},"author":1,"featured_media":1630351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1630349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1630349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1630349"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1630349\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1630351"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1630349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1630349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1630349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}