Imagine that you are Fed chairman in 1830, and at an FOMC meeting you ask the committee: “how can we adjust our policy levers here at the central bank to get a wage boost for the slaves down south?” What would happen? Your fellow fed-heads would probably look at you like you were insane. Then they would offer suggestions, trying not to giggle in the process.
In the future, a big milestone in the march toward a fascist slave-state will go into the history books when Congress formally relieves the Fed of its mandate to strive for full employment. Perhaps this will be done in the aftermath of a global financial catastrophe caused by the Fed pumping absurd amounts of liquidity into the global financial system.
This is inevitable because with the ever-expanding policies of free-trade and mass-immigration, what is left of the USA’s economic boarders are rapidly melting away. And that’s why the wage data is still punk after trillions of stimulus from the Fed: wages in the formerly-sovereign USA cannot rise until after wages rise in the “Mexico” and “China” and “India” regions of the neoliberal global empire.
It’s pretty obvious that the Fed, and the ECB, have succeeded only in creating massive distortions in global financial markets (such as negative rates on German bunds). Perhaps this is why Janet Yellen is so hesitant to make even a teensy quarter-point rate hike: she knows that she will have to engineer the mother of all soft-landings. The path of least resistance for her would be to keep rates at zero until a rise in inflation forces her hand. Once the CYA is in place, she can blow up the world.
If David Rockefeller and his neoliberal oligarchy were competent, they would have removed the Fed’s full-employment mandate long before they reached their goal of commoditizing global labor at a wage-rate of $2 per hour. But they are anything but competent, and the 2008 financial crisis was only a small taste of the havoc they will wreak upon this nation.
Godspeed Janet Yellen, Godspeed.