by Charles Hugh Smith
Even The Wall Street Journal is publishing critiques of Federal Reserve policies that suggest the FED has no idea how the U.S. economy actually works because their policies have failed to help the bottom 95%.
The mainstream media and the Establishment have resolutely clung to the self-serving fantasy that the Federal Reserve,
...that is, the economy will generate its own growth and the FED can dial back its zero-interest rate policy and all its other unprecedented monetary easing measures.
The FED fantasy was that boosting the wealth of the obscenely wealthy would "trickle down" to the bottom 95% via "the wealth effect" - as stocks and bonds rose in value, households would feel wealthier and happily plunge deeper into debt.
The upper-middle class owns 15% and the bottom 80% own what little is left:
Globally, the top .7% (less than 1%) own 45% of all wealth and the top 8% own 85% of all wealth:
While the spending of the bottom 95% stagnates, spending by the top 5% that have benefited from the FED's welfare for the rich has soared.
If you glance at this chart, it's no longer a mystery why most of the new jobs in the "recovery" are low-paying service-sector jobs waiting on the top 5%:
As for "reforming" the central bank or the status quo - real reform is impossible, as explained in 'Why Our Status Quo Failed and Is Beyond Reform.'
All "reform" is just PR cover for more of the same. Central banks can only do one thing, and that's provide monetary welfare for the wealthy.
Now that the central bank has enriched the obscenely wealthy, distorted markets globally and addicted the economy to cheap credit, the servile toadies and lackeys in the mainstream media and the Cargo Cult of economic "professionals" is finally admitting that it was all a fraud, a racket that favored the rich.
The only way to stop widening wealth and income inequality and kick your smack addiction is to eliminate the pusher...