Here’s another list to cross check with whether your senator voted “yea” on the Omnibus bill.
I look at it this way. We are starting to get a very clear picture of who is on what side of the great crony debate. Those who think that the status quo can continue, even at this late date, need a wake up call in November.
Of course some of his proposals are not in line with what we’d want of course. But there are areas of public policy where small government people and people like Bernie Sanders can work together. Focusing on the Fed in a serious way is a good place to join forces. In the end there will be significant battles over policy, but before that real progress can be made.
We think. All indications are that it will happen though. Doesn’t it make sense for the whole world to wait with bated breath for the decision of an economic politburo? So capitalistic.
We disagree with a couple of points in this article, but overall he’s right. The middle class is indeed dying. A little more each passing year. But it’s not robots and foreign workers which are fundamentally to blame. That we live in a crony, highly financialized economy has more to do with it. Vast swathes of the American people are shut out of the economy because of things like occupational licensing and other regulations which benefit vested interests. Piles of red tape hold people down.
Calls to reform, audit, and even eliminate the Federal Reserve have been growing in recent years. We certainly call for an end to the Fed and I encourage anyone interested in monetary policy and the Federal Reserve to read Free Prices Now by ACC co-founder Hunter Lewis. Hunter is a scholar of the highest order and a remarkably successful financier. If you want to understand the sins of the Federal Reserve read his book.
Regular readers of ACC already know this both because we often make the case against the Fed but also because, in our opinion our readers are just a particularly smart bunch. But that the Fed is no friend is a point which deserves to be made often.
The Fed is not on your side. It is on the side of the big banks. Always keep this in mind. In most cases Yellen and Company really couldn’t care less about you or me.
In 1937 after years of a meager “recovery” the economy slumped again as artificial economic props were taken away. The Great Depression was born anew. 4 years later we were in a global war.
Let’s see, depression, then mediocre growth underpinned by artificial economic stimulants, sounds pretty familiar.
This is what happens when interest rates are set by a politburo instead of by the market.
Well yeah. But sadly this is a revolutionary idea for many of the world’s old school Keynesian economists.
The key drivers for the increased inequality (as we have said many times before) are the financialization of the economy and the emergence of a truly crony capitalist system. The two are of course entwined. The cronies enjoy bailouts and bonuses from banks which get bailed out. The unconnected get to do the bailing. (In various ways.) That’s basically the gist.
Ole’ Helicopter Ben put this long emerging trend into overdrive. But don’t blame him for inflating the assets of the already wealthy while the rest of the country was left behind.
This bill is probably a step in the right direction, but the focus should be first on auditing the Fed under a bright burning magnesium fueled light. We need to know what’s really going on in the institution before we can chart the best way forward. Open the beast up. Let’s see what happened in 2008/2009 and during the QE binge. Then we can tinker, or hack away, or blow up as needed.
It should be noted that Senator Warren,
They say “don’t fight the Fed.”
This has been especially true from an equities investment perspective since the Crash.
The question now though is how much fight is left in the Fed.
Many of our readers are probably aware that Townhall Finance regularly features our work. John Ransom, the editor there does an excellent job and we encourage everyone to check out the site if you have not visited. It’s a very good mix of free market thinkers from different schools. Though it is generally not “libertarian.”
That is why I was particularly pleased to see this article in Townhall. A new and broad political disposition is clearly emerging.
What is of particular note is that this paper comes from a Brookings Institution scholar. Brookings is generally liberal in its disposition.
I am not keen on the prescription. Notice that the author comes short of calling the Fed itself unconstitutional. But at least there is some criticism of the Fed coming from the lefty camp. The excuses for the Fed have gotten embarrassing of late.