Federal Reserve

Lew Rockwell is concerned this guy worked for Goldman-Sachs, and I'm sure he'll funnel money to enrich his cronies like everybody else, but it sounds like he has a better policy for dealing with the never-ending recession.

"Considered to be more “hawkish” than Sir Mervyn after raising interest rates in Canada to offset a housing bubble, Mr Carney could move the Bank more quickly towards rate rises and unwinding quantitative easing."

Obviously no Austrian economist wants a centrally planned money supply, but they universally agree that higher interest rates are necessary to wash away the malinvestment and get the economy growing again. Too bad our government isn't this smart.

"A willingness to try radical solutions – such as his unusual commitment to keep interest rates at rock bottom for a year in the depths of the crisis in 2009 – was widely welcomed after two years of predictable policy and economic stagnation in the UK."

This seems to directly contradict the paragraph quoted above.

"Kevin Daly, UK economist at Goldman Sachs, said: “He has a reputation for being a policy pragmatist and innovator. Relative to the conservative approach the Bank has adopted under King’s stewardship, it is also possible that Carney may be prepared to engage in more unconventional forms of QE.”"

This sounds like a promise of a giveaway to Goldman-Sachs. This article is worthless.

Paul Krugman calls for more money printing, apparently admitting that QEInfinite is not enough. If infinite is not enough, nothing is enough. Krugman has exposed himself. In a related post, Warren Buffet claims tax rates have no bearing on investment. What both these posts tell us is these people are liars. We know Krugman bought a generator to ride out not-hurricane Sandy. He didn't leave his life in the hands of the government. Don't trust what these frauds say. Trust what they do. I guarantee both Krugman and Buffet own lots of gold.

This comment about the Fed reminds me why it's often good to go back to the basics.

"The arguments by American critics of a gold standard all rest on this unstated presumption: The economic outcomes of policy decisions made by a committee of 12 salaried bureaucrats, 7 of whom were appointed by the president of the United States, and 5 of whom were appointed by the largest regional banks that own a majority of shares of the 12 regional Federal Reserve banks, are better for the nation than the decisions of millions of owners of gold coins, who seek their own interests."

This is the fatal flaw of central planning.

"When the public had access to gold coins prior to 1914, individuals controlled banking policy. They also controlled government fiscal policy. They could take their coins out of commercial banks if they did not approve of government policy. This is why national governments annul or restrict gold-coin redeemability whenever a major war breaks out. They do not want to face the citizens' veto."

There you have it.