What the Fed is doing is plain and simple insanity: by its deliberate plan of continuing to debauch our currency it is setting in place the inevitable consequences of that currency eventually reaching its intrinsic value: zero.
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Federal Reserve – Press Release, 9/13/2012 To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. So, another $40 […]
It’s like pulling back a rug and discovering beetles and bugs crawling around underneath. You can’t put the rug back and tell yourself there aren’t bugs under there anymore. Once you see the scam –using the euro “crisis” as a front for total government – you can’t go back and say it’s only about the euro. There really are bugs under that rug.
One unintended consequence of low interest rates is that savers are punished at the expense of borrowers. There is a discernible transfer of wealth from those who own it to those who don’t. That’s major.
Reuters - At Jackson Hole, a growing fear for Fed independence Increasing political encroachment on the Federal Reserve, particularly from the Republican Party, could threaten the central bank’s hard-won independence and undermine confidence in the nearly 100-year old institution. Reuters is the British equivalent of The New York Times – thoroughly establishment and its voice in England. When they […]
Despite his alleged “experience” in creating jobs, Romney still misses the point. It’s not about jobs. It’s about creating the environment favorable to job creation.
Ambrose Evans-Pritchard: Deposit flight from Spanish banks smashes record in July Data from the European Central Bank shows that outflows from Spanish commercial banks reached [$92 billion] in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9 percent [of deposits]… In any capitalist economy, bank deposits […]
Charles Lane: The Failing Case for Gold As history abundantly demonstrates, the gold standard would not immunize the economy from financial crises. Imposing it would, however, render the central bank powerless to respond to them, as it could not readily expand credit or act as lender of last resort to solvent institutions. Here is another […]
Doug French: The Fed Obliterates the Savings Ethic A central bank’s debauchery of the currency serves to raise people’s time preferences and impair their judgment. For years I’ve repeated the dictum that inflation debauches not only the currency but the citizens’ morality: their sense of individualism and personal responsibility. In other words, inflation causes people to […]
This is a no-win situation for Bernanke. He can’t reduce interest rates any further, he doesn’t want to expand his already bloated balance sheet, and he doesn’t want to appear as though he is ineffective. What a charade!