Author: Max Keiser, the host of RT’s ‘Keiser Report,’ is a former stockbroker, the inventor of the virtual specialist technology, virtual currencies, and prediction markets.
The US economy is trapped between two economic barriers that effectively are whittling away America’s global dominance: the Federal Reserve Bank and the minimum wage laws.
Both of these constructs are limiting to economic growth and the only way to liberate the economy, so that it can grow by itself without having to take on $6 or $7 in debt for every $1 in GDP, is to simultaneously get rid of both the Fed and the minimum wage.
To take a step back for a second, let’s examine how these two key economic architectural pillars work together and against each other. The Fed, as it is now widely understood; coops the treasury function in the economy by lending money to the treasury who then lends it out to the rest of the economy, kicking back interest income to the Fed for no reason other than rent seeking (the Fed has inserted itself into the mix and take free fees, nothing more). The Fed’s role is completely unnecessary and merely creates a fee stream for the Fed who is incentivized to keep lending even to sectors of the economy that are suffering under the weight of an enormous credit bubble.