I can’t help but feel obligated to call out misinformation and make corrections when needed. Many in the Bitcoin and Austrian space have subscribed to the dogma that the Fed as an institution is fundamentally evil and morally bankrupt. I don’t disagree, but as always, nuance maters. Comments like this are where I find Bitcoiners and adjacent ideologies fall short in the details of how things actually work. With that said, let’s do some Fed myth busting and re-educate the common (wo)man.
There are multiple things to correct here in the tweet above. Full disclosure, Justine happens to be a friend of mine. However, these statements are not only misleading, they’re just wrong. Nothing against her personally, but there are some fundamentals that need to be both covered and understood. So let’s tackle these points one by one.
Point 1. The Federal Reserve Is Not Federal
Yes, the “Federal” aspects of the Fed has been quite murky in the past, especially when you have globalists like Bernanke and Yellen selling out the US economy with ZIRP and bailing out the world. However, a Fed under Jerome Powell makes Justine completely right on target.
If anything, the Fed is at odds with the Davos-run Congress and Treasury. As I have mentioned many times in the past, it’s Congress who does all the “money printing” by passing stimulus bills that the Fed is then forced to respond to/deal with. A common critique of the Fed is that it’s private, but in a way it’s rather global because it’s essentially the central bank of the world and is responsible for the creation of eurodollars.
However, one power the Fed has as an independent entity that should never be overlooked is its asymmetrical ability to drain credit dollars/capital out of the global economy (as we have seen with Powell raising the reverse repo rate which we’ll return to later). Federal or not, the Fed is using it’s status as whatever entity it follows under to defend itself against Davos globalists for survival by raising ratess, re-indexing their debt to SOFR, and rejecting eurodebt as collateral in order to starve and destroy the offshore dollar markets.
Point 2. The Fed has no reserves
This statement couldn’t be further from the truth. As Kashkari famously proclaimed during the COVID 2020 crash, (like it or not), “there has an infinite amount of cash at the Federal Reserve.” The Fed, as well as every central bank known to man, can get away with this because central banking has always and will be a game of confidence, and America has generally been the world’s safe haven to park capital compared to any other country.
Above is section 5 of the H.4.1. (AKA: the Fed’s balance sheet). See that highlighted part? Yeah, that’s the Fed’s ammo. $5 TRILLION of ammo. The Fed and banks are in fact well capitalized with cash reserves. Not only that, but they have tons of gold (in a rather non-disclosed amount) stored at Fort Knox. I know the Bitcoiners will throw a bitch-fit saying “GoLd iSn’T mOnEy! GoLd iS a sHiTcOiN! REEEEEEEEEEEEEEEEEEEEEEEEEEE!!!!!!!!!!!!!”
Guess what. That market has said otherwise for thousands of years. And guess what else? So do all the central banks that are binge-buying gold and selling US treasuries for cash because the West (Davos) wants to drag the US into full-out nuclear war with the global South. Therefore, nations selling/devaluing US debt and instead buying up commodities causing even more inflation. Gee, talk about blow-back. Maybe NATO shouldn’t expand on soverign nations’ boarders like they promised they wouldn’t?…
WWIII tangents aside, to bring the conversation back to Bitconiers, they’ll be happy to know that the Fed will most likely end up putting Bitcoin on the balance sheet. Coming to an H.4.1. NEAR YOU! This (along with backing to currency to precious commodities like BRICS is working on), is what the Fed will need to make their debt more attractive and maintain the status of being the cleanest shirt in the dirty laundry of fiat.
Political Dumbassery
If you weren't already embarrassed by America’s politicians, well here’s your chance. I see Miss Adams more as a “political hopeful” since she doesn’t hold a seat, but this is just further evidence our politicians are failing us, especially the next generation (millennials).
This is wrong in every way shape and form. I’ve ranted long enough, so I’ll let my tweet do the talking…
The bottom line is that there’s an abundance of ignorance about the Fed and financial plumbing, even in circles where you’d think the people would “know better.” It’s disappointing to see, especially in the Bitcoin and Libertarian space since these folks had the inquisitive nature to question the system to begin with, ask the hard questions normies either cower from or don’t even consider, and are willing to call bullshit on the system say the quiet parts out loud. Unfortunately, they stop at the part of “Fed bad, sound money good”, and commence bitching about the world we live in and romance about the world we want. I was once there myself and I sympathize with my peers. However, nuance is key and these issues are much more complex. Being black-pilled, or hell, even orange-plled, and spreading mis/dis/mal-information is not productive and could even be dangerous.
These enemies of deep-state anxiety pimps want us to feel trapped and hopeless in our digital echo-chambers and blame one big enemy everyone can hate, bit the Fed or whatever. Yes, Bitcoin is way out, but hoping for the world to end sooner and start over is not the world we want to live in. The actions being taken by the Fed lays the ground work for a more peaceful and prosperous transition. It won’t be easy, nor will it be a paradise, but that’s what’s happening right in front of us while nobody is looking. That is the conversation that I feel is worth having.
~ Phil Gibson
Blame the Fed | QPOL Issue #34
there is considerable empirical evidence that Powell is on the side of the white hats. The screaming from the WEF about his rate increases, which derails their fiat printing press program. That and DJT installing him, and then surrounding him with gold standard types. Keep in mind Trump folded the Fed into the Treasury in 2020.
https://www.linkedin.com/pulse/federal-reserve-rolled-us-treasury-economic-forecast-david-mashian
Some serious 5th generation warfare has been taking place for some time...