Is the Fed Ignoring History? 

The Federal Reserve was established in 1913 in response to a series of financial panics, most notably the Panic of 1907. Its mission was (and is) to provide stability in the financial system and promote sustainable economic growth. But that seems like something other than the plan today. 

In recent years, however, some experts have begun to question whether the Fed is living up to its mandate. In particular, they point to Jerome Powell’s actions—or lack there of—in response to the coronavirus pandemic as evidence that the Fed is no longer interested in promoting sustainable economic growth. Instead, they argue, Powell is merely following the playbook laid out by Klaus Schwab in his book “The Fourth Industrial Revolution.” 

What Is the Great Reset? 

The Great Reset is a term that was first coined by Klaus Schwab, the founder and executive chairman of the World Economic Forum. The WEF is a society with big names like the Bilderberg Group, Bill Gates, George Soros and other elites.  In his book “The Fourth Industrial Revolution,” Schwab argues that we are on the cusp of a new era in which technological change will radically transform society and the economy. This transformation will be unlike anything we have experienced before, and it will have profound implications for how we live and work. 

One of Schwab’s central arguments is that our current economic system is no longer capable of delivering sustained economic growth. In order to avoid a global economic collapse, he says, we need to reset our economy and create a new framework for how we produce and consume goods and services. This new framework will be based on three principles: sustainability, inclusion, and agility. This framework would have rations, social credit scores, and universal income. 

Does this sound anything like Communist Russia? “Step out of your houses!” 

What Has Powell Done? 

In response to the coronavirus pandemic, Powell has taken a number of unprecedented actions. Perhaps most notably, he has raised interest rates near zero until inflation falls to 2 percent. He watered down the US dollar by pumping trillions of dollars into the economy through asset purchases and lending programs. Then didn’t pay attention to the growing crisis and took action too late. Was this done on purpose? 

Critics argue that these actions doomed us for a path of inflationary pressure and asset bubbles. They point out that similar policies were employed by central banks in Japan and Europe with little success—and warn that they could ultimately lead to stagflation (a combination of high inflation and high unemployment). Moreover, they argue that Powell is ignoring history by failing to take into account the role that easy monetary policy played in fueling previous asset bubbles. 

Is all of this by design? If Americans become financially dependent on someone or some government, they can be controlled easier. What do you think? Is this the underlying Great Reset? Is Jerome Powell purposely pushing America toward the Great Reset? Or is he simply following standard economic policy in an effort to stabilize the economy?