The Federal Reserve Enables and Grows Big Government

How the Fed Powers the Biggest Government in History

Mike Maharrey Mike Maharrey
Midweek Memo
February 21st, 2024 Comments

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The Federal Reserve is the engine that powers one of the biggest, most powerful governments in history. 

In this episode of the Money Metals' Midweek Memo, host Mike Maharrey explains how and why the Fed enables an ever-growing federal government. 

Mike opens the podcast using an analogy drawn from the TV show "My 600-Pound Life," explaining how when somebody is engaged in destructive behavior, there is almost always an enabler.

He goes on to highlight one bad behavior of the U.S. government - borrowing, spending, and driving up a massive national debt, and he explains how the Federal Reserve enables it. 

Along the way, Mike explains the three ways governments can obtain funding, puts the national debt and the government's spending habits into perspective, and explains how Uncle Sam's rising interest expense makes the situation untenable.

Enter the Federal Reserve.

Fed monetary policy allows the government to borrow and spend far more than it would under normal market conditions. Mike explains the mechanism the central bank uses to enable big government spending, and why this too is ultimately untenable. 

Closing out the show, the emphasizes that Federal Reserve monetary policy levies an inflation tax on all of us and wraps up with a call to action to buy gold and/or silver to help protect yourself from this tax.

Articles Mentioned in the Show

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Mike Maharrey

About the Author:

Mike Maharrey is a journalist and market analyst with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.