“Even though the Fed claims its mission is to keep unemployment low and maintain stable prices, that is not its real purpose.
If it were judged on that criteria, the Fed would long ago have been legislated out of existence because its performance in these two areas is so poor. The dollar only has a fraction of the purchasing power it did when the Fed was started 100 years ago, and high levels of unemployment and underemployment have been recurring problems ever since the Fed was given control of interest rates, and therefore the economy.
The real reason the Fed exists was made clear by Mr. Rosengren, the Boston Fed’s president — The Fed exists to make sure the US government gets all the money it wants to spend. The Fed does this by making sure that all of the US government debt being issued is bought by someone, even if the Fed has to buy the paper itself. That is what quantitative easing is all about.
When the mountain of debt and derivatives really begins to implode, it will shake the financial world to its core because we will see the disastrous effects of 4 decades of monetary and fiscal mismanagement.
Source King World News