1/ To see why the Fed is the most racist organization in the world is not difficult. You first have to see what systemic racism is: systemic structures of oppression, or conversely, supremacy, that by their very action perpetuate massively unequal social power relations. https://twitter.com/robbsmith/status/1279181476471267328

2/ The Fed is not, qua institution, subjectively racist. That would be absurd (in a way that it is not, for example, with an institution like the Knights of the Ku Klux Klan). The Fed mandate, strictly speaking, is not racist.

3/ But their sin, to my mind, is far worse. By being willfully ignorant (to the point of studied indifference) to the brute facts of how social structures oppress, most directly through rigidified economic castes, the Fed is the primary fuel for American systemic racism.

4/ For decades, the Fed has been the primary enabler of an asset class hegemony that, among many other things, is also a racial caste hegemony. It would be simply impossible for white dominance of power to continue as unabated w/o the Fed explicitly monetizing financial assets.

5/ When we see massively unequal racial outcomes—from homeownership to criminal justice to family formation to employment—of course there are myriad drivers in a complex, multi-systematic & interdependent mesh of causation. Obviously.

6/ But we should also see these effects of systemic bias another way: the structure of entrenched white power *has been guaranteed to not lose* bc it is backed by the printing press of the world’s global reserve currency.

7/ You think *that caste* has a hard time buying houses, financing education, staying out of jail, riding their 401k to the top, and paying for the most important life-flourishing goods in a society that has hidden this move behind fake inflation data for 30 years?

8/ A society can and will be ONLY as just as are the mechanisms of economic power in that society. And we approach the apotheosis of an era where the Fed has enabled the most severe forms of social injustice to persist by guaranteeing the wealth of a white owner class.

9/ When Blackrock is given the power to purchase and bailout private bonds, stocks and derivatives using the Fed’s—our!—money, that is a searing, brazen act of economic injustice that is also severely racially unjust.

10/ In that one move alone, in the past 90 days, it has guaranteed the perpetuation of another decade of a white owner class power that would, alternately, have to face the headwinds of this pandemic & deflationary deleveraging depression on the same terms as everyone else.

11/ But they are not everyone else. They are people who will shatter their mandate, break the law (FRA 13-3), and stop at nothing to maintain the economic status quo so the owner caste can escape pain. They might not see how racist that is, but it can be nothing but.

12/ As long as we don’t have sound money, as long as the Fed abuses us & politicians allow it to continue, conservatives are being sold out and progressives stand zero chance of achieving their goal of furthering social equity.

13/ Why not? From a complex systems POV, it’s simple: Because power will *never* have to make better decisions on behalf of everyone.

14/ We are an irresilient country precisely bc power can make terrible decisions and get away with it. The prime mover behind this fact is the Fed’s infinite power to finance—read: paper over—bad decisions that further weaken the nation economically, socially, & racially.

15/ What has me particularly frustrated right now is there has been zero—ZERO—discussion of this dynamic anywhere this electoral cycle, on the left or right. No one is getting to the heart of our national irresilience, geopolitical stupor, or structural racial inequities.

16/ If we want our country back, if we want to prove that black lives *really* matter, then we need to slam Jay Powell & the Fed to the ground in front of Congress and force it to end the bailout of the rich white class.

17/ Put everyone on the same playing field and in the same boat, and just watch how fast our leaders get smart and honest about making the right decisions for everyone in this nation.

18/ But let the Fed keep doing what it’s been doing for 30+ years, & nothing will change. In fact, it will get far worse, bc the progressive gains of addressing merely the symptoms will be met by a white conservative backlash 4 years hence. Already, Trump’s new strategy.

19/ So let me sum this thread up this way: the Fed is the most systemically racist institution in the world because it is the single most powerful enabler of an unlevel playing field that perpetuates dominance of white power, and thereby handicaps our entire nation’s capacity...

20/ ...for intelligent adaptive change that is just, compassionate & strategic. Until this changes, until everyone faces the same future in a similar way, nothing else can really change, the roots will be rotten. And in fact, by deepening our irresilience, will make things worse.