“Look, you’re corrupt, we’re corrupt. There’s one difference. We’re honest about it.” – Get the Gringo
A hitman makes people nervous people past tense.
News came out this week that high officials of the Federal Reserve® were allegedly caught front-running trades. I use the word “allegedly” because that’s the word you use when you are dealing with people who might be allegedly low-life allegedly stinking allegedly thieves.
What’s front-running? Well, if you know that a client is going to buy a LOT of stock, you buy at the price before the big news. Why? Well, when the price goes up, you benefit from the price increase. Duh.
Why was the Fed™ buying stock (or bonds), anyway?
The quote was that the Fed® was buying securities to “help markets function smoothly.”
Huh. I thought, you know, actual people buying and selling stuff was supposed to do that. Silly me. I missed that part in Econ 101 where the professor said, “Oh, and if the market doesn’t do what the government wants it to do, it can cheat on a massive scale with money it printed just because.”
If you hear someone scream in space, does that mean the vacuum is broken?
When the “Plunge Protection Team” was originally formed by Federal Reserve® in the late 1980s, it was secret. It would (in theory) see a down day on the stock markets and swoop in late in the day with well-timed purchases to keep the market from going down.
We can argue all day about the morality of that. My take is that it’s about as moral as Joe and Hunter Biden teaching in a pre-school. The market serves a function – to give prices. Prices provide real-time data and information. To distort prices creates artificial winners and losers.
To be clear, a stock going down in price can be a very good thing. Bad companies should die. If they serve a purpose, someone else will do it. For the Fed© to purchase stocks (or bonds, or debt) to prop up companies isn’t helping them, it is rewarding financial morons by giving them more money.
Regardless, because it’s 2021, the Fed™ is out there buying stuff willy-nilly on a regular basis to manipulate markets. And the big dogs at the Fed© know what the Fed® is buying. So, for one of them to buy stocks in a company whose assets the Fed® is purchasing?
That’s what is normally called criminal.
There’s a show for criminal Democrats who go fishing. It’s called, “Off The Hook.”
But why single out the Fed®? I mean, it’s not like Federal Judges are doing it, too, right?
Sorry to disappoint you if you thought the judiciary was clean.
In the last decade, 131 Federal Judges took part in 685 lawsuits where they had a financial stake in a company that was a party to the lawsuit. This is a violation of Federal law. My bet? In the world of corruption that is 2021, this will be ignored. At most, the Federal Judges will get a slap on the wrist, perhaps a memo to their file.
Government employees are never punished unless they’re not acting in the interest of the system. They can ignore work. I have a friend who had been a Federal bank examiner. His job was to go in and evaluate the systems at banks to make sure they were good. He told me, point-blank, “If I were to get a smaller bank and find a violation, it would be okay, but a big bank? They just wanted good results for a big bank.”
Why? Corruption is rampant in every part of the financial system. It’s rigged.
In Soviet Russia you rob bank. In United States, bank rob you.
The stock market is rigged. The Federal Reserve© has a bias that stocks should go up, just like the value of the money that you worked for should always go down.
Does gold always go down?
No. But the value of a dollar should always decrease.
The reason for this is fairly simple. The Federal Government has taxes on wages. It has taxes on imports. It has taxes on death, it has taxes on (checks list) tanning. I’ll repeat: there are Federal taxes on tanning.
Inflation is nothing more and nothing less than a tax on money, or, more properly, a tax on productive people who saved and earned that money.
A is for apples. B is for bananas. What is C for? A plastic explosive.
So, what is it that we know, without a doubt, is corrupt?
- The Federal Reserve®.
- Federal Judges.
- Financial regulators.
- Money.
I’ll add one more: the overall justice system. George Soros has bought election after election for District Attorneys that allow Leftists committing crimes to walk free. As I’ve written before, this is the final poison for Western judicial systems. Without the promise of a fair and impartial trial, without the certainty that we are a nation of laws rather than men, justice will fall to the hands of ordinary men.
Unlike Batman®, ordinary men will use guns.
We live in an amazingly risky time. The problem with corrupt systems is that they fail when trust erodes. If citizens don’t trust that the outcomes are fair? I mean, what if the elections were fraudulent?
Failure. Corruption breeds more corruption. Injustice? It breeds more injustice.
A society based on corruption and injustice will devolve into anarchy or totalitarianism.
I have some candy canes that are in mint condition.
Saving our systems requires justice. Justice requires a moral people.
Hmmm. However do we get that?
I wouldn’t ask a Federal Reserve® governor or a Federal Judge. After all, Pa Wilder told me not to hang around with people of poor character.