http://ronpaulinstitute.org/archive...d-racism/?mc_cid=7c085b6324&mc_eid=6a3914e92c House Financial Services Chair Maxine Waters and Senator Elizabeth Warren have introduced the Federal Reserve Racial and Economic Equity Act. This legislation directs the Federal Reserve to eliminate racial disparities in income, employment, wealth, and access to credit. Eliminating racial disparities in access to credit is code for forcing banks and other financial institutions to approve loans based on the applicants’ race, instead of based on their income and credit history. Overlooking poor credit history or income below what would normally be required to qualify for a loan results in individuals ending up with ruinous debt. These individuals will end up losing their homes, cars, or businesses because banks disregarded sound lending practices in an effort to show they are meeting race-based requirements. Forcing banks to make loans based on political considerations damages the economy by misallocating resources. This reduces economic growth and inflicts more pain on lower-income Americans. The Carter-era Community Reinvestment Act has already shown what happens when the government forces banks to give loans to unqualified borrowers. This law played a significant role in the housing boom and subsequent economic meltdown. The Federal Reserve Racial and Economic Equity Act will be the Community Reinvestment Act on steroids. This legislation also requires the Fed to shape monetary policy with an eye toward eliminating racial disparities. This adds a third mandate to the Fed’s current “dual mandate” of promoting a stable dollar and full employment. Federal Reserve Chair Jerome Powell has already publicly committed to using racial disparities as an excuse to continue the Fed’s current policy of perpetual money creation. Since inflation occurs whenever the Fed creates new money, Powell and his supporters want a policy of never-ending inflation. Supporters of this scheme say that inflation raises wages and creates new job opportunities for those at the bottom of the economic ladder. However, these wage gains are illusory, as wages rarely, if ever, increase as much as prices. So, workers’ real standard of living declines even as their nominal income increases. By contrast, those at the top of the income ladder tend to benefit from inflation as they receive the new money — and thus an increase in purchasing power — before the Fed’s actions cause a general rise in the price level. The damage done by inflation is hidden and regressive, which is part of why the inflation tax is the most insidious of all taxes. When the Fed creates new money, it distorts the market signals sent by interest rates, which are the price of money. This leads to a bubble. Many people who find well-paying jobs in bubble industries will lose those jobs when the bubble inevitably bursts. Many of these workers, and others, will struggle because of debt they incurred because they listened to “experts” who said the boom would never end. The Federal Reserve’s manipulation of the money supply lowers the dollar’s value, creates a boom-and-bust business cycle, facilitates the rise of the welfare-warfare state, and enriches the elites, while impoverishing people in the middle and lower classes. Progressives who want to advance the wellbeing of people in the middle and lower classes should stop attacking free markets and join libertarians in seeking to restore a sound monetary policy, The first step is to let the people know the full truth about the central bank by passing the Audit the Fed bill. Once the truth about the Fed is exposed, a critical mass of people will join the liberty movement and force Congress to end the Fed’s money monopoly.
can we also spell “ blacks getting college degrees that simply dont pay well”. How about blacks pumping out babies at a young age ( 75% of all blacks ). How about blacks committing crime at an alarming rate and embracing a thug culture? I think that has more to do with income enequality than the fed. Give me a break !
Yes, the problem with all these "racial justice" movements is many times they are worse overall for everyone including the people facing this alleged "injustice". Many low income people are minorities. On the surface, if your plan is to help solve "racial disparities" it's easy as simply giving minorities all the money they need to buy a house. The problem is numbers don't understand racism. It's a fragile human concept. So you've "solved" "racial injustice" by giving money to minorities and now they're happy as clams in their new house. Mission accomplished. But wait, how are these people going to pay? You're telling me that majority of these loans were given to poor people who would've been disqualified even if you excluded their race? Next you're going to tell me the banks are levering up to the tits on mortgage backed securities under the assumption they're safe. GOLDMAN IS DOING WHAT. And so we reach the crash of 2007-2009. It is unsurprising they didn't learn the first time. The numbers don't care about racism. If you print money you expect to return to you, and the people you give it to are incapable of paying it back, you're increasing injustice by attaching a several-hundred-thousand dollar ball-and-chain to their leg. When the market crashes and they're foreclosed on they inevitably end up worse than they started having spent so much of their income just breaking even on the house every month they haven't saved anything. I'm almost convinced at this point Democrats are a cleverly disguised racist party. I don't think Hanlon's Razor applies here. But I will present an alternative solution if they really want to solve a large swath of "housing insecurity". Open up all the land in California and Massachusetts currently held back by NIMBYism and build tiny homes for $15,000 each. No frills, no amenities. Just a roof and some power/water/gas. Sell these to people. I say California since, it would appear, California and Massachusetts want to lead this charge. Of course this would never happen. Warren and Waters don't want these minorities, the homeless, and generally "lower class" people in their backyard. I doubt they could even identify a minority in a line up (though warren might be 1/1024th more sure that she could). This is yet again another example of vote pandering while they snicker at their dinner with California's elite and billionaire MIT endowment donors about "how they convinced the unwashed masses they'd save them this time!"