In the wake of the 2022 mid-term elections I hope this bill is re-legislated (or made void) by the 118th Congress.
Gov't (by design?) is unnecessarily complex, much like a Rube Goldberg machine. Regarding the US economy there are volumes of federal legislation,
rules, and regulations. There is also massive federal bureaucraZy. Central in this complexity is …
The FedThe Federal Reserve System, the Fed, targets 2% inflation and directly influences the Prime Rate.
Fed Policy2% inflation is a reduction in purchasing power for every US citizen and resident. This is NOT acceptable.
With 2% inflation prices double in 36 years. How does this help citizens, especially the poor and those on fixed income?
Inflation made complex by gov't
Purchasing something for $100 in 2002 now requires $148. Again, how does this help US citizens?
And why, under the watchful eye of the Fed, is inflation still at 7.7%? At this rate prices will double in 9.4 years!
Low rates make money cheap. More (and riskier) loans are granted. More money in placed in the system is … by definition … inflation.
Why are Prime Rates artificially low? Is it to cause inflation? I hope NOT.
However, gov't legislation and other federal nudges can cause longer term disruptions. Any gov't edict that causes scarcity will increase prices. Since early 2021 the following actions have aggravated prices:
Additional steps include:
First step, any artificial scarcity caused by the federal gov't should be reversed/canceled. This will open up segments of our economy, especially energy producers.
Second, with the COVID endemic behind us, sovereign states need to stay open. Re-closing states would muzzle small businesses and recripple the nation.
Third, monitor current Federal Funds Rate hike of the Fed to slow inflation. We expect the Fed to use rate increases to slow inflation.
Fourth, call the Fed before Congress and get answers for:
Fifth, legislate a recurring audit of the Fed – annually or once every two years. The relationship between Congress and the Fed should be corrected. The Fed is under Congressional authority and subject to congressional oversight.