Kevin Warsh is being floated as Trump's pick for Federal Reserve Chairman, and the mainstream media is already wringing their hands about keeping the Fed "independent" from politics. They're warning that Warsh will face pressure to help with "ballot-box issues" instead of focusing on monetary policy.
Here's the reality check: The Fed has never been independent. It's always been political. The only question is whose politics it serves.
What the Mainstream Won't Tell You
I've been saying this for years: the Federal Reserve is not your friend. It's a private institution that serves the interests of big banks and the government, not Main Street Americans trying to build wealth.
This whole "Fed independence" narrative is a joke. Follow the money. When the government needed to fund massive spending during COVID, what did the Fed do? It printed trillions of dollars. When Wall Street was collapsing in 2008, who bailed them out? The Fed. When banks needed cheap money to fuel their speculation, who provided it? The Fed.
The mainstream won't tell you that every time the Fed "stimulates" the economy, they're really transferring wealth from savers to borrowers, from Main Street to Wall Street. Every dollar they print makes your dollars worth less. It's the biggest wealth transfer scheme in history, and it's been going on for decades.
Whether it's Warsh or anyone else, the next Fed Chair will face the same impossible choice: let the debt bubble collapse or keep printing money to prop it up. Guess which one they'll choose? The rich already know this – that's why they own assets, not cash.
What This Means for Your Retirement
If you're 55 or older with money sitting in savings accounts, CDs, or money market funds, you're getting crushed. The Fed's policies ensure that "safe" investments pay less than inflation. You're literally paying the government to hold your money while it loses purchasing power.
Let's do the math. If inflation is running at 4% and your savings account pays 1%, you're losing 3% of your purchasing power every year. On a $100,000 retirement nest egg, that's $3,000 gone – not spent, just evaporated by Fed policy.
Your 401(k) isn't safe either. When the next financial crisis hits – and it will – guess who'll pay for the bailouts? Anyone holding dollars. The Fed will print more money, devalue the currency further, and your retirement purchasing power will take another hit.
What You Should Do
This is why financial education matters more than ever. Stop thinking like your poor dad, who believed the government would protect his savings. Start thinking like the rich dad, who understood that real wealth comes from owning real assets.
The wealthy don't keep their money in dollars when central bankers are playing political games with the currency. They own gold, silver, real estate, and other assets that hold their value when paper money fails.
Wake up, people. The Fed isn't going to become less political under Warsh or anyone else. The money printing will continue because the alternative – letting the system reset naturally – is politically unacceptable.
Consider diversifying part of your retirement savings into precious metals through a Gold IRA. While politicians and Fed officials play games with your dollar, gold has maintained its purchasing power for thousands of years. It's not subject to the whims of whoever happens to be running monetary policy this decade.
The choice is yours: keep playing by their rules and watch inflation eat your retirement, or start protecting yourself with real assets that can't be printed into oblivion.
Source: MarketWatch