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Powell Spills the Beans: Cheap Immigrant Labor and Inflation Will Bailout Debt Bubble

Powell Spills the Beans: Cheap Immigrant Labor and Inflation Will Bailout Debt Bubble
Federal Reserve Chair Jerome Powell speaks after the May 1st Federal Open Market Committee meeting.

Without saying it in so many words, Federal Reserve Chair Jerome Powell made clear that the Fed is in sync with the Biden administration’s policy of bailing out the massive government and private debt bubble with cheap immigrant labor and inflation. Though no Federal Reserve or U.S. Government official will ever admit that their actions reveal what the real policy is.

In his post-meeting press conference on May 1, 2024, Powell crowed that, “strong job creation over the past year has been accompanied by an increase in the supply of workers, reflecting increases in participation among individuals aged 25 to 54 years and a continued strong pace of immigration.” Of course, everyone knows that the increased participation of workers is due to many workers having to take multiple jobs to keep up with inflation, and that immigrant labor, legal or illegal, is largely cheap. In fact, according to the government’s own statistics, most of the job creation has been in low-wage sectors such as hospitality and health care.

As to inflation, Powell spouted the usual claptrap about the Fed’s commitment to 2% inflation when inflation has been rising and is over 3% by official standards and more than double that by real world prices. Of course, it is a joke to say that 2% inflation is within the Fed’s mandate when the actual mandate is stable prices. Reducing the value of the dollar by 2% annually is just Fed speak for: “We’re robbing you,” especially since the Fed has never, and does not intend, to even reach that goal. In fact, despite the Fed’s decision to keep interest rates at the same level, he announced that the Fed will be slowing the rate at which it reduces its government debt holdings. Thus, at the same time the Fed is supposedly keeping monetary policy “restrictive,” it is putting fewer treasuries into the market in an effort to lower interest rates.

All this while the Biden administration is ramping up the printing presses to dole out billions in election year payoffs. In addition to the billions given to the military-industrial complex through last week’s Ukraine/Israel/Taiwan/Whatever bill, Biden is cancelling billions in student debt for art students, boosting marijuana sales, distributing new green scam monies, and expanding illegal immigration. All this, in combination with the Fed’s policy, is fueling inflation and effectively lowering wages for most working Americans.

None of this will stop unless Trump is back in the White House, which Wall Street and their London confederates fear the most. On April 26, the Wall Street Journal published an article purporting to report on a 10-page memo from unnamed Trump advisors who say that Trump will challenge the independence of the Fed if he takes office in January 2025. The Trump campaign distanced itself from this report.

Whether this report is a leak designed to hurt Trump among financiers, or a trial balloon, no one should be upset about challenging the independence of the Fed. The Fed has never been independent of Wall Street and London financiers. It has only evaded oversight from the officials elected by the people to promote the general welfare and oversee the financiers who control the Fed. Over the Fed’s history, what has this so-called “independence” produced? The 1970’s stagflation, the junk-bond bubble, the 1990’s real estate and dot.com bubble that burst in 2000, the real estate derivatives bubble that brought down the world’s financial system in 2007-8, the subsequent negative interest rate and quantitative easing policy that led to the biggest wealth transfer in history, the lie that inflation was transitory, and now the push for cheap immigrant labor and continued inflation to drive down wages and inflate away the debt.

Perhaps it’s time to end the Fed altogether. Hopefully, that’s what Trump has in mind.