One of the things I greatly appreciate now is the opportunity to sit and talk with Americans at various airports or on planes as I travel. There is a serious concern out there in the populace about the direction of our country.This week I had to travel to the Detroit area on Wednesday and flew back late yesterday. On the flight back from Detroit to Charlotte, I had the distinct pleasure of sitting next to an astute professor by the name of Dr. Kenneth H. Thomas, who has been an independent bank analyst and consultant since 1969 and has been President of K.H. Thomas Associates, LLC since 1975. Dr. Thomas holds a Ph.D. in Finance from the Wharton School — where he was a lecturer on finance for some four decades — and has written extensively on the Community Reinvestment Act (CRA) of 1977.
I say this with the greatest respect, but what a total geek-out monetary policy discussion we had sitting there and analyzing the failures of our economy. We addressed the Community Reinvestment Act of 1977 by Jimmy Carter and all the subsequent policy mistakes that led to the 2008 financial meltdown.
Here are five key things you should be considering too, because they affect you more than you know:
1. Dr. Thomas thoroughly supported my beliefs and assertions regarding repeal of the Glass-Steagall Act and how that allowed commercial and investment banks to collude and lead to the failed premise of “too big to fail.”2. Dr. Thomas and I share a big concern about the residual effects of Dodd-Frank and one of its horrific creations, the Consumer Financial Protection Bureau, headed up by Richard Cordray. When I sat on the House Small Business Committee, we had a hearing where Mr. Cordray testified, and it was quite disturbing the power granted to this group of unelected bureaucrats and its ability to implement rules without any Congressional consideration or approval.
3. We discussed the Federal Reserve Bank, known simply as the Fed. If you go to the Fed Board of Governors website it states this about the mission of the Fed: “The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.”
Now, of course, the concept of a central bank in America goes back to Alexander Hamilton but it was promoted in a book by Marx and Engels called the “Communist Manifesto as the fifth plank — “Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.”4. We are both concerned about the expanded role the Fed is playing in American fiscal policy by way of its monetary policy — namely quantitative easing. Now folks, that is a high-speed term that relates to the artificial lowering of interest rates and the incessant printing of money. We agreed that everyone cheering for the historic Dow Jones Industrial average highs isn’t aware that this is an artificial result of artificial monetary practices — in essence the Fed is propping up our economy. As I’ve stated before, we don’t have a free market economy, we have a false economy driven by printing of money and government spending — and Dr. Thomas who is no fan of the Fed, is concerned about the real bubble that will burst.
5. What if the Fed has become a political tool for manipulating our economy? Will current Fed Chairman Janet Yellin maintain these dangerous practices in order to mask the true state of the U.S. economy until the November 2016 elections? What will happen when this bubble bursts, but more importantly, under whose watch will it occur? Yes, I voted to audit the Fed because I have grave concerns about the use of American taxpayer dollars and the manipulation of our economy.Now, I know that this may not be a “sexy” topic, but folks, we were so very close to a complete catastrophe back in 2008 which began with a failed government policy initiative, the 1977 CRA. The issue is that we are walking right back to the precipice and this time we may just take the leap. I hope y’all will study the Fed and become more aware of the practices being instituted by this independent financial institution that has political ramifications.
Our U.S. unemployment rate is not truly at some 6.3 percent number and Yellin has stated that the Fed will continue its practices until unemployment goes below 6 percent. That is not the mission of the Fed, but it reflects the true failure of our overall fiscal, tax, and regulatory policies – and a $15 minimum wage is not the panacea, just more progressive socialist political gimmickry.
Things may be just peachy for folks on Wall Street, but it aint so on Main Street — where folks can’t just go into the basement and print themselves money.
Sometimes you just don’t know who God will send to cross your path. I can tell ya, having an hour with Dr. Kenneth H. Thomas was a blast.