Posted tagged ‘Federal Reserve’

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Walter E. Williams, The Free Market Is Not Allowed To Work.

January 7, 2013

From the video, “When H.L. Mencken was asked what is the definition of an election he said, and I quote,”Government is a broker in pillage, and every election is an advance auction on the sale of stolen goods”.”

If the intervention of Government into the market could be limited to the theft of our production through taxation, our economy wouldn’t be in as bad a condition as it is. Government couldn’t have grown as intrusive as it has, if it was limited to spending only what it steals in taxes, and because it would (more…)

Categories: Econ. 201, Government and Politics
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Fiscal Cliff or Political Theater?

December 17, 2012
Tax

Tax (Photo credit: ( 2012)

“All the world is a stage and all the men and  women merely players:….” Shakespeare.    Remember this quote when analysing anything involving   politics.

Human action is purposeful behavior. Action is not simply verbal preference, it is the individual choosing and acting to reach a particular end. What is the particular end the actors on the “fiscal cliff” stage are trying to attain? If you say making themselves and their political party look good, and making the opposing politicians and party look bad, you have a keener insight into the plot of this play than 90% of the audience these political performers are playing to. This is all about assigning blame for the economic problem we are in, and trying to maneuver into position to take credit for any upturn in the economy, or assign more blame to the other party if it gets worse. What you are watching is not economic reality but political theater. You have to dig below the political surface and look at the underlying economic realities, in order (more…)

Categories: Government and Politics
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Government Intervention And It’s Consequences.

December 5, 2012

I found this video on EconomicPolicyJournal.com, it is by Nick Gogerty at gogerty.com. You will visually see the inflating of the housing bubble caused by Federal Reserve money printing. You will also see the bursting of the housing bubble, a bubble which would have never been created in the first place, if not for the Fed’s money pumping.

A toxic brew of, 1)  Government mandating lower lending standards, 2) the Federal Reserve printing the funding for these loans, and 3) the artificial lowering of interest rates because of this counterfeiting, created mortgages that could not possibly be paid back. Banks got bailed out by the Federal Reserve’s purchase of mortgage-backed securities through (more…)

Categories: Government and Politics
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Thomas Sowell’s Take On The Federal Reserve.

November 13, 2012

When asked, “if you get rid of the Federal Reserve, what do you replace it with?”. Thomas Sowell answers, “When someone removes a cancer, what do you replace it with?”

You can read more about the Fed in this short article titled “Fed Up With The Fed?” by Thomas Sowell at jewishworleview.com.

This is a quote from  the article, “It is not politically possible for either the Federal Reserve or the Obama administration to leave the economy alone and let it recover on its own. Both are under pressure to “do something.” If one thing doesn’t work, then they have to try something else. And if that doesn’t work, they have to come up with yet another gimmick.”

 

Categories: Government and Politics
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Dallas Fed. President Fisher Points to the Feds Real Problem in Speech at University of Texas.

November 9, 2012

English: Cover of 2010 edition of What Has Gov...

Remember our discussion about Human Action in a previous post, Mises’ “Human Action” Explains Lies About Libya. Use the lens of “Human Action” to analyze the actions of the Federal Reserve. These are quotes from a speech in late September by Richard Fisher Dallas Fed President, excerpted from an article from Fox Business.

“We’ve never been here before so none of us know how we’re going to navigate out of this particular quadrant of the liquidity pool in this ocean of money. And what I’m concerned about is that we may be painting ourselves into a corner,” he said.

“We’ve done a lot … It’s not clear to me despite our theoretical ability to understand the tools very well, in practice, how we are going to get out of this. Read more here, Fed’s Fisher:” Were drowning in unemployment”

These are the kinds of admissions which result in finding a horse head in your bed. You are not supposed to speak this honestly even when trying to hide the truth in coded language. (more…)

Categories: Econ. 201, Government and Politics
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The Role of Interest Rates in a Market Economy.

October 3, 2012
saving and spending

saving and spending (Photo credit: 401(K) 2012)

Do interest rates determine the amount of savings or does the amount of savings determine the interest rate?

We place a higher value on possession of a good or service in the present then possession of the same good or service at some point in the future. Unlike a good or service, paper money has no use value, other than use for starting a fire if you are cold or toilet paper if you run out. It’s only value is in exchange. Money is certificates of purchase, and can be exchanged for any good or service at any time, therefore we value money in the present more then we value money in the future. Money represents the ability to acquire a good or service you desire, it is not the good or service.

The premium we place on present goods compared to future goods, or put differently, the discount we place on future goods compared to present goods is (more…)

Categories: Econ. 101, Econ. 201, Government and Politics
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Counterfeiting by the Federal Reserve, Although Legal, Still Results in Theft.

September 29, 2012

Counterfeit—1. make an imitation of something genuine so as to defraud. 2. an imitation made to deceive.

The Federal Reserve: The Biggest Scam In History

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Is it legal for you to counterfeit money and try to purchase goods with your printed dollars? It’s illegal because it is theft. You are exchanging something for nothing. You get a good or service that was the property of someone, and they get a counterfeit bill. When that person tries to use the counterfeit bill in a future exchange and it is swiped with the pen and found to be counterfeit, at that moment he knows the good or service he once owned was stolen.

When the Federal Reserve injects counterfeit money into the economy it’s (more…)

Categories: Econ. 101, Government and Politics, Hall of Fame
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