Fed Groupthink: How the Federal Reserve’s Cult-Like Mentality is Destroying the Economy
The Cult of Fed Groupthink
Fed Groupthink describes the rigid, dogmatic ideology of Federal Reserve bureaucrats—an elite club of economic high priests who endlessly repeat the same discredited theories about inflation, interest rates, and monetary policy while the financial system continues to unravel.
These officials are not merely deceptive; they are true believers in their own failed policies. Their worldview is built on myths: the 2% inflation target, the Phillips curve, “transitory inflation,” and the dangerous belief that they can micromanage a complex economy without catastrophic consequences.
There is no real diversity of thought within the Federal Reserve. Entry into this elite institution requires adherence to the same Keynesian doctrines, ensuring that alternative economic perspectives never threaten its control. Intellectual diversity—the kind that fosters genuine debate and challenges assumptions—is systematically excluded. As a result, the institution operates in a self-reinforcing cycle of ignorance, blind to the destruction left in its wake.
Debasement: The Great American Scam
The modern U.S. dollar is not money—it is debt. Its value is systematically eroded by Federal Reserve policies that prioritize inflation and government expansion over economic stability. In 1971, when President Nixon severed the dollar’s gold convertibility, gold was valued at $43 per ounce. Today, it stands above $2,800. The reason is clear: relentless money printing and deliberate debasement by the central bank.
The Federal Reserve refers to this process as “monetary policy.” In reality, it is legalized theft.
The U.S. dollar has been systematically weakened, reduced to a hollow imitation of its former self. Yet, in the distorted logic of Fed Groupthink, this is considered beneficial. In their worldview, higher inflation is not a disaster but a necessity—a sign of a "healthy" economy. If Americans are not losing purchasing power at an acceptable rate, their system is deemed ineffective.
Bitcoin: The Threat They Fear
Unlike the dollar, Bitcoin has a fixed supply. This is why the establishment fears it. Bitcoin requires no central authority, making it an existential threat to the Federal Reserve’s dominance over monetary policy.
Many Bitcoin advocates mistakenly believe that Bitcoin is becoming “scarcer” over time. This is not entirely accurate. The total number of Bitcoins in circulation is simply all Bitcoins ever mined, minus those lost permanently. The reduction in new supply from halving cycles does not change this reality. However, Bitcoin’s true advantage lies in its resistance to manipulation by central planners.
This is why those in power seek to regulate, undermine, or replace it with their own controlled digital currencies.
The Fed’s Distortion of Markets
A common misconception is that the Federal Reserve "follows" the market. This is false. If the Fed were simply reacting to market conditions, it would not have the ability to inflict such widespread economic damage. Instead, it distorts the market through what can be described as the Fed Uncertainty Principle—the idea that the mere existence of the Federal Reserve creates massive economic distortions by triggering self-reinforcing feedback loops.
A clear example of this occurred in 2003-2004, when the Fed artificially lowered interest rates to 1% and maintained them at that level, despite economic recovery. The result was the largest housing bubble in history, fueled by reckless speculation and cheap credit. When the inevitable crash followed, it was not the banking elite who suffered—the American public bore the brunt of the collapse.
The same pattern repeated in 2020, when the Federal Reserve flooded the system with trillions of newly printed dollars while keeping rates at near-zero levels. Now, home prices have reached record highs, inflation continues to erode wages, and yet those in power pretend this was an unavoidable accident rather than a predictable outcome.
Under the delusions of Fed Groupthink, the public is expected to accept these hardships as the cost of "economic stability."
Corollaries of the Fed Uncertainty Principle
The Fed Uncertainty Principle reveals four undeniable truths:
- The Federal Reserve does not know where interest rates should be. Only a free market can determine that. The Fed’s models are built on flawed assumptions, and its officials remain willfully ignorant of their own failures.
- Every crisis caused by the Federal Reserve results in more power for the Federal Reserve. The institution responsible for creating economic instability consistently uses its own failures to justify further centralization of authority.
- The Federal Reserve will never learn from its mistakes. Each failure is met with an even greater dose of the policies that caused the problem in the first place. More inflation, more bubbles, more economic devastation.
- The Federal Reserve does not care about legality. It operates on the principle that it is easier to seek forgiveness than permission. And since no meaningful accountability exists, it continues to expand its reach unchecked.
The Inflation Lie
For years, the Federal Reserve insisted that inflation was “too low.” In their warped logic, the problem was not that essential goods were becoming unaffordable but that prices were not rising fast enough.
That delusion led to reckless policies, and when inflation spiraled out of control, the same officials who created the problem pretended it was unforeseen. The American people are now expected to endure the consequences without question, while those responsible evade accountability.
Economists at the Federal Reserve have even debunked the Phillips curve—the theory that low unemployment causes inflation—yet Fed officials continue to treat it as gospel. When their own research contradicts their policies, they simply ignore it. The cult of Fed Groupthink refuses to acknowledge reality, no matter how much evidence is presented.
Conclusion: The Federal Reserve Must Be Dismantled
The Federal Reserve is not the solution—it is the problem. The economy is not "broken"; it has been deliberately sabotaged. The institution responsible for economic instability has no incentive to correct its mistakes because every disaster it creates results in more power for itself.
There should be no Federal Reserve. Its failures are not accidental but inevitable. A system built on lies, manipulation, and unchecked authority cannot be reformed—it must be abolished.
To protect against the coming financial upheaval, individuals must take action. Reliance on the banking system is a trap. Those who wish to secure their financial future must seek alternatives outside of the Fed’s reach.
For those looking to safeguard their wealth before the next collapse, Seven Steps to Protect Yourself from Bank Failures By Bill Brocius is essential reading. This free resource provides critical strategies for navigating an economic system designed to keep ordinary citizens vulnerable.
The illusion of control is crumbling. Those who understand the game will survive. Those who don’t will be left holding worthless dollars.
