Friday, October 21, 2011

Blame Game with the Federal Reserve

Full disclosure, I am a Ron Paul fan. I loved his book End The Fed. When I read his 10/20/11 WSJ article "Blame the Fed for the Financial Crisis," it made me wonder what the other Republican candidates' opinions are on the worth and value of the Federal Reserve Bank.

This goes to the very core of what we think the roll of government should be. In a capitalistic society, government has no role in picking winners and loser. The markets decide. Unfortunately, politicians and key appointed leaders have a different view in most governments. They all believe in manipulation, that they know better. The fed is not exempt, in fact manipulation is what it is all about.

Arrogance is its Achilles' heel. They believe they know what is best for all. They are smart, we are not. Interesting, central banks are core to Marxist and socialist doctrine. Price manipulation is wrong, whether it be for commodities, interest rates or money supply. Why? Because they get it wrong more often than they get it right. Free markets get it right every time.

The Fed governors are like politicians: they must do something. They want people to know that they are smart and did x, y and z, even though x, y and z either causes the problems or dig us a deeper hole.

1 comment:

Alan Rock Waterman said...

Well said, Hayes. It is telling that we now see reports that Ron Paul supporters or those bringing "End The Fed" signs to some of the Occupy Wall Street events are being told they are not welcome there.

Whatever promise that movement originally held, it's clear that banker and Wall Street elements have been attempting to co-opt and neutralize it. Here's direct evidence of that infiltration: