We need to End the Fed not audit it. But I’ll take an audit as a first step. If audited the real question is the length to which the Fed will go to obfuscate. My bet is pretty far.
The Fed is the Prime Mover of crony capitalism.
What a great idea.
When life gets expensive people stop going to Outback. I think Confucius said that.
Add the political pressure to raise minimum wages and things don’t look so good for restaurants right now.
To be clear there are many people who have become illegitimately rich because of our crony capitalist system. But the central banks, particularly the Federal Reserve, are the prime movers of crony capitalism. Things continue down the wacky economic path they’ve been on for the past decade and a half (really before that too) because the central banks fear a real, honest to goodness, profit and loss, economy.
There are the legitimately rich and the illegitimately, crony rich.
Federal Reserve “independence” is a convenient untruth for the Fed and for many in the Washington political class. The Fed is absolutely influenced by politics. This is evident even to the fairly casual observer.
(From The Dallas News)
Carnegie Mellon University’s Allan Meltzer, a distinguished monetary economist, had this to say about Fed policy during the crisis: “Under Mr. Bernanke, the Fed has sacrificed its independence and become the monetary arm of the Treasury.”…
…Bernanke’s Fed seemed to care just as much about the health of prestigious financial houses as the state of the economy.
Gold and the “poor man’s gold,” silver, are liberators and fundamentally challenge the current central bank system of debt and debt servitude.
The metals should be treated as what they are, a form of money. As such they should not be taxed.
Mr. Gross is not the first one to observe this and it is a tragic observation.
By Ron Paul
The Wells Fargo bank account scandal took center stage in the news last week and in all likelihood will continue to make headlines for many weeks to come. What Wells Fargo employees did in opening bank accounts without customers’ authorization was obviously wrong, but in true Washington fashion the scandal is being used to deflect attention away from larger, more enduring, and more important scandals.
We have said before that no Fed Chair was ever “free market.” This absolutely includes Mr. Greenspan. His legacy is one of a price fixer, an economic manipulator, a bubble blower, and ultimately one who in many ways ushered in the crony era we live in today.
But as we see in the attached piece from Sebastian Mallaby, Allan Greenspan, the one time “Maestro,” knew better all along. He knew that Fed policy could and typically did destabilize the real economy.
One of the reasons I so enjoy Ron Paul (and there are many reasons) is because he raised the Federal Reserve as an issue in the eyes of the public. The Fed would have been very pleased to stay just as it was, a collection of supposed economic wizards gathered around the monetary cauldron in the Eccles Building. Obscured from view. In the shadows, where the “secrets of the temple” were shared with a select few and in hushed and important tones.
“I smell…Central bankers.”
How this obvious truth eludes so many economists is beyond me.
It’s simple. The central banks seek to goose the economy. They lower interest rates below the real market interest rate. As such people, institutions, everyone takes advantage of the relatively cheap credit. But as this cheap credit is taken advantage of malinvestment (that is investment that would not have happened if the market had set rates) begins to build up. It builds and builds and builds until there is so much malinvestment the economy topples on itself.