Central planning is only good for two things. Poverty and comedy.
The stories from the Soviet Union central planners are just that. They caused abject poverty for hundreds of millions of people AND created hilarious stories about shortages of such things as right shoes. The claim was that two factories were set up, one to make left shoes, and one to make right shoes. But when the factories started in production it was discovered that both were making left shoes creating a massive shortage of right shoes.
When central planning is involved get ready for starving people and laughs galore!
Many people used to blame the poor economy in the Soviet Union, not on central planning, but on alcoholism. Forget for the moment whether people drank a lot because the economy was so bad… or if their drinking made the economy bad.
Alcoholism was an often fronted explanation for why things were so bad in the Soviet Union.
And now we have the US, or the USSA, as I call it, which has become massively centrally planned and is now a mix between communist and fascist.
And, the politburo Chief for the central planning agency of the economy, the Federal Reserve, Janet Yellen, has come out and blamed the poor US economy on opiate addiction!
Again, forget for the moment whether people may be taking opiates because the economy is so bad… and not vice versa.
And, forget for the moment that slurring Janet always sounds like she has just taken a handful of oxycontin.
In Yellen’s testimony before the Senate Banking Committee, she mentioned that there has been a major “decline in labor force participation among prime-age workers as a result of opioid abuse.”
Now, of course there is a major problem with opioid and heroin addiction in the US thanks to the pharmaceutical industry getting innocent people hooked on highly addictive pain medication while outlawing the pain medications that work best and are much safer such as cannabis and kratom.
But the drugs dealt to the unwitting public by drug dealers in white lab coats, called doctors, are not the root of the problem in the US economy - the problem is the central bank and the communist-style central planning that comes with it.
And, the Federal Reserve’s policy of free money and low to zero interest rates for nearly a decade now has done far more damage than the pharmaceutical industrial complex than to the economy.
And, what did Janet have to say about raising rates a modicum?
Well, according to her, having raised the rates to a lofty 1% level, that should be good enough.
Remember, I’ve been saying since 2010 that the Fed will never raise rates a substantial amount ever again. The reason being that US government debt is so massive now that a rise of above 5% will all but bankrupt the country. And I continue to be proven right.
The main item CONgress wanted to question Janet on was on “auditing” the Federal Reserve.
Janet put up resistance as all central planners do. Especially the central planner of the central bank that all but controls the government.
She pointed out that the Fed is already the most transparent of all central banks, and that is actually, sadly, true.
Regardless, we already know what it is the Fed is doing. We know it is a taxpayer funded backstop for a fraudulent fractional reserve banking system. We know it writes a blank check to government and its cronies. We know how it suppresses interest rates artificially, and we know why it has to open its mouth about everything under the sun.
Ultimately, a mere audit of the Fed is futile because it’s just that, an audit. Instead, the Federal Reserve, like all central banks, should be abolished entirely.
The Federal Reserve and CONgress are the two biggest reasons why the US economy is faltering and why it will soon completely collapse. Yet, they meet, and come to the conclusion that the reason things are getting bad is because of drugs!
The only thing of value that came from the whole affair was the man sitting behind Yellen who flashed his free market “Buy Bitcoin” sign before the state controlled propaganda media could pan away.
The US government is bankrupt and the Federal Reserve is out of bullets to do anything. Now we just await the collapse of the system.
Janet Yellen has just proclaimed we’ll never see a financial crisis in our lifetime. When a central banker says that you can almost bet everything you’ve got that we’ll have a financial crisis within weeks or months.
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