Federal Reserve

Asset Inflation as Economic Stimulus: The Fed Strategy

No.: 
50

All right, not everything in today’s Farrell commentary is erudite or even proportional. Nevertheless, he does make some valuable points. It is apparent that America is setting up various disgruntled interests in the world to make war with us. The U.S. decision to monetize debts in the face of a deepening recession is problematic. Quantitative easing (as it is called) will expose our international friends, competitors and enemies to economic complications as our U.S.

What Will it Take to Satisfy the Banking Beast?

No.: 
38

One war is over. Another one begins. The war to save America from plutocracy was lost this week as the federal government capitulated to financial sector demands for fresh capital and more bailout guarantees. Naturally, the Bush and Obama administrations don’t see themselves as losing the financial war. But they’re two of a kind when it comes to Wall Street. Just consider Obama’s willingness to work the phones to U.S. Senators to secure more money for financial elites.

Alternatives to Big Bank Bailouts

No.: 
37

Federal Reserve Chairman Bernanke claims that banks need more aid if we hope to return to economic growth anytime soon. What he really means is that banks and leveraged investors need inflationary economic growth if they are to get the type of returns that widen the gap between the wealthy and everyone else. This is why Fed governors have been peppering their speeches with concerns about inflation falling below “desirable levels.” What is the desirable level for inflation?

Can Markets Be Moral Under FED governance?

No.: 
33

Capitalism without morality is a terrible sight to behold. Prudently responsible market capitalism is superior to communism because it preserves the sowing and reaping equation without governmental force. Merit deserves its reward just as demerit and ineptitude must be penalized to preserve the legitimacy of law and show the way to goodness.

The Greater Grinch: Madoff or the FED?

No.: 
32

Which anti-Claus has done more harm: The Federal Reserve or Bernie Madoff? A holiday stage play could show the FED creating money while Madoff filches it. But in the larger picture the FED is by far the bigger bandit. Madoff’s Ponzi scheme aimed at making money for a select group. But greed and dishonesty caught up with Madoff when the economy turned, resulting in the forfeiture of illegitimate profits and perhaps much of the invested cash.

A Great Delusion: Money For Free

No.: 
30

What is a delusion if not a false belief held in spite of invalidating evidence? Defined in this Webster’s Dictionary way, many of American’s financial and political leaders are delusional. Some elites claim that deficits don’t matter — they can be inflated away, the resultant distortions of little consequence. Others, including a large chunk of the “Forbes” crowd, think economic growth is a sustainable paradigm on a finite earth — an idea that is dumber in our time than the flat earth theory 400 years ago.

The End of Big Money's Legitimacy

No.: 
28

“The Star-Spangled Banner” became the national anthem on March 3, 1931, when the Congress and President Hoover formally recognized the anthem. In the midst of the Great Depression, a song about the flag flying proudly in the land of ‘the free and the brave’ gave encouragement. While the Stars and Stripes are still aloft, our nation’s financial impropriety now drags the flag through the dirt. Our U.S. Congress will continue to make laws but the destiny of the country is no longer theirs to command. We have passed the tipping point.

The Forgotten Beneficial Forms Of Deflation

No.: 
26

The vice chairman of the FED, Donald Kohn, vowed recently at the Cato Institute to be vigilant in checking any drift toward deflation. Should we feel appreciative or dismayed? Truth be known, this vow is infected by the same sort of elitist thinking that justifies morally hazardous bailouts of highly leveraged financial institutions.

Economic Reforms America Needs Now

No.: 
17

Here comes the debate about regulating Wall Street, right on schedule. Three great problems exist. First, the rule-making is tardy. We’re locking the barn door after the herd has been rustled and shipped to other shores. Second, we’ve learned that the watchdogs in regulatory agencies and securities rating organizations are wolves. Instead of running them off we’ll see to it that they have their usual positions of influence when the next chapter of Wall Street unfolds. Third, we need a few good macro-level changes instead of an avalanche of micro-management rules.

The FED's Role: Growth, or Sustainability?

Just over 30 years ago the U.S. Congress gave to the Federal Reserve a mandate to manage the economy so as to get economic growth. This mandate gave the FED an excuse to structure the economy so as to favor those with the most capital. What we need at this juncture in our history is a new and equitable mandate for the FED from a Congress that represents the common good, not an elitist interest.

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