Income Inequality is the Federal Reserve's Fault

Thomas Piketty’s new book, “Capital,” has been receiving a lot of attention lately in which he blames….wait for it…the free market for the obscene income inequality we see today. Shocking, I know. It never ceases to amaze me how the problems of government get blamed on free exchange.

The last century can accurately be described as a century of statism, collectivism, and central banking. The result? 100s of millions killed in government wars, gulags, famines, purges, Great Leap Forwards, and the stealth transfer of wealth from the bottom to the top brought out about by central banking and fiat money. After all of this, capitalism gets the blame?

The only reason we have some resemblance of prosperity is because, like weeds growing out through cracks in the cement arching for the sun, markets – open, black, and grey – always pop up. Where there is a demand for something, someone will supply it. Thankfully, the technology exists where we can cirumvent the state monopolies altogether, and I imagine that this process will birth a million new weeds reaching desperately for the sunlight of freedom amidst of the darkness of statism.

What is missing from Piketty’s analysis, interestingly, is what the New York Sun notes in a great editorial. The biggest jumps in income inequality occur right after 1914 when the Federal Reserve was shoved down America’s throat, and 1971 when the Regime gave up any resemblance of fiscal smoke and mirrors and simply cut the dollar from gold completely.

Coincidence? I doubt it. Has any mainstream analysis of Piketty’s book or the topic of income inequality in general brought this up? Of course not.

The Fed will continue to devalue the dollar, bailout Wall Street, prop up the house of cards, and the state will continue to use us like tax cattle to pay back the interest. Meanwhile, the critics will blame what little freedoms we have left to peacefully exchange value with another and tighten the noose even further.

Buy gold. Buy silver. Buy Bitcoin. It’s my strategy; it’s based on economic necessity and principle. Let the ivory tower liberals blame “the free market” for the debt-and-financial slavery they impose on us. In the mean time, the real free market that they can’t even begin to comprehend will grow and prosper – without permission.