Under the Obama Cabal, Establicrats and their Big Money financiers had free rein to loot and pillage — aka “redistribute wealth” — even as the real economy was propped up like a Potemkin Village under the guise of “quantitative easing.”

In practice, quantitative easing — the Fed lending money it creates to its member banks at artificially reduced rates via a combined Treasury securities and an “out of thin air” shell game — is simply Big Banks/Wall Street artificially redirecting (stealing) money away from the Main Street economy in collusion with Deep State/Congress through the facilitation of the Federal Reserve (Fed).

Despite the perception of most people that the Fed is a government institution, it is, instead, a private entity owned by its member banks, and its affairs are managed to the benefit of those banks, not America as a whole.

Under Obama, the Big Banks took trillions of dollars of “free money” from the Fed and used it to speculate on Wall Street instead of making loans to Main Street that would have grown the pie for us all.

Hence, our gross domestic product (GDP) was largely stagnant under Obama, even as the number of Americans thrown out of the workforce and onto food stamps/welfare reached record highs.

The Fed continues to collude with Congress to load unsustainable debt on the national credit card.

The Big Banks rake in big bucks and the politicians build their big spending house of cards as if there will never be so much as a breeze in the future to knock it all down.

We may never know the extent of the theft; certainly not without an audit of the Fed, and neither the Big Banks or Congress are in any mood to let that occur.

Despite the plethora of conspiracy theories — many of which boil down to little more than anti-Jewish screeds — that portray the Fed as some diabolical puppet master in complete control of world events, the reality is that the Federal Reserve Bank was created by Congress in 1913 and is governed in accordance by statutes of the Federal Reserve Act.

The ultimate responsibility for Fed general malfeasance can be lain squarely at the feet of the politicians.

Unfortunately, those same politicians are wholly lacking with respect to ethics and morality, and have voluntarily become addicted to the Fed’s enabling of government and societal deficit spending.

Like drug addicts, most politicians choose to see no farther than their next money fix.

So, why should Main Street Americans care about all of this?

Since Congress abdicated its constitutional responsibility to manage the money supply to the Fed in 1913, the U.S. dollar has lost more than 96 percent of its value ( all while sticking Americans with a national debt that is currently almost $182,000 per taxpayer.

Not only are our savings and paychecks are worth less; eventually we will all have to pay the bill, even if that payment comes in the form of a Venezuela-style collapse of our economy.

So how can we fix this?

The four components of gross domestic product (GDP) — a relatively accurate barometer of national economic health — are personal consumption, business investment, government spending and net exports.

Per the Bureau of Economic Analysis, in 2017, U.S. GDP consisted of 68 percent personal consumption, 17 percent business investment, 17 percent government spending and negative 3 percent net exports (,

As one can see, consumer confidence and the success of “the little guy” has an outsize effect on the overall economy.

Thanks to the economic policies enacted by Trump’s administration, jobless claims have continued to trend down - including record low unemployment for Blacks and Hispanics — and consumer confidence has shot up.

The resulting increases in personal consumption has served to push GDP growth far beyond that experienced under Obama.

Perhaps more importantly, there is a lot of room for improvement in growing the business investment and net exports slices of the pie.

As Trump’s policies make America a more attractive place to do business for both Main Street and the honest side of Wall Street, there is some hope we can eventually grow our way out of the quagmire.

We still face the stark reality, however, that we are currently in the midst of the greatest asset bubble in the history of the world.

In the United States, the market capitalization of publicly traded companies compared to GDP stood at a record high 165 percent in 2017 (, which is almost three to four times its historically stable level.

Economist Ludwig von Mises observed, “There is no means of avoiding the final collapse of a boom brought about by credit expansion.

“The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final total catastrophe of the currency involved.”

There is also the factor of Big Money working against Trump’s pro-America policies. Many analysts have concluded the Fed is intentionally slowing the economy solely to make Trump look bad.

Based on the data and the comparison of the Fed’s actions during the Obama reign versus since the 2016 election, it is nearly impossible to argue against that premise.

Though the Fed claims their actions are driven by their (self-declared) mandate to “manage inflation,” the fact is that inflation was higher for the same comparable period under Obama, yet the Fed drove the discount rate to zero and left it there for the duration of Obama’s occupation of the Oval Office.

Conversely, the Fed imposed nine rate hikes in the first two years of Trump’s presidency.

A major irony is that the root causes of currency-based inflation — as opposed to market-driven inflation that efficiently allocates resources to address supply and demand imbalances — are directly attributable to mismanagement by both the government and central bank.

Currency-based inflation is less about goods and services costing more than it is about fiat currency being worth less.

Fiat currencies are those not tied directly to the value of real assets (e.g., gold), but are, instead, valued solely in accordance with “the good faith and credit” of the issuer.

Ideally, of course, the Fed would not be in the business of setting interest rates at all. Free markets would do a much better job of setting rates, and could efficiently do so at a micro level.

In tandem, the Congress should return to managing the money supply based only on economic activity.

It is also worth mentioning that precious metals are not a safe haven in the case of a cataclysmic financial collapse, unless one considers lead and brass as precious metals.

When the music stops and there are nowhere near enough chairs for all the people left standing, historically, those left without have little respect for the property of others.

We would do well to heed one of the basic axioms of economics: Markets are efficient, but only in the long run, and then brutally so.

We can either accept this truism and modify our economic policies and personal actions accordingly, or ignore same and take our chances on the “brutally so.”


ARTHUR SMITH of Paris is a member of the local Volunteers for Freedom Tea Party. His email address is

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