Posted tagged ‘The Federal Reserve’

Danielle DiMartino Booth: “The Fed Has Crippled Our Middle Class. Completely Gutted It Out”

April 27, 2017

Danielle DiMartino Booth was a Dallas Fed Staffer. Her knew book – Fed Up: An Insider’s Take On Why The Federal Reserve Is Bad For America”, gives incite into the incestuous intellectual relationship Fed policy makers have with each other. She calls it “group stink”.

Dimartino Booth is interviewed by Jeff Deist of the Mises Institute in the video below.

Here are some excerpts from the video.

Deist:The fed is almost exclusively staffed by academics, by phd’s. That wasn’t always the case. Could you summarize this impact of academization of the Fed for us?”

Booth: “I think the end result of all of this, which stands in direct contrast to the mandates of the original 1913 Act…to insure intellectual diversity and industrial diversity on the board and among the fed leadership. But is has created what I call “Group Stink”. It is the inability to decent, the inability to say no. Most people inside the Fed think the same. They don’t take the complications of a global and very modern financial system into account…… It is a lack of appreciation for anything that you and I would consider to be on planet earth. And it is what has made the Fed so very out of touch, and angered so many people. They might not know it’s the Fed. But they know something has gone very very wrong with their financial well-being and who is in control of their financial well-being.

4:50 – Deist: “A huge percentage of these Fed economists are Ivy League graduates. So despite all thier book learning, do you think people in the Fed have read Austrian stuff…..have they read Mises and Hayek. Or is this just completely outside of their orbit?

Booth: “You know I think it might have in the index of one of their economic text books. But I would bring up the word ‘malinvestment’ and their eyeballs would roll into the back of their head.

My Take From 2013: Thomas Sowell calls it “credentialed ignorance”. He is being rather nice. I would call it an example of intellectual inbreeding. These Federal Reserve policy makers have earned their economic credentials from some of the “best” Universities. That fact means we should stand in awe of them? Unfortunately I don’t give my respect to people with “status” that easily. I think respect is earned. What I have observed is these people live in a continual feed back loop. They all think pretty much the same way because they were taught by professors who all think the same way. They are hired to work for people in Government who think the same way. They are very rarely challenged to think outside of their small tunnel of knowledge protecting them from their mountain of ignorance. A mountain that would crash down on them if their tunnel wasn’t there.

Deist: “Do you think they really in their hearts, believe that …..monetary policy can create economic growth in and of itself?

Booth: “If they don’t believe it, they do a really good job of faking it…. Because it is clear that they do not understand the damage that’s been done to the social fabric of this country, to the culture, to have driven down multiple generations throats the idea that the only way to get growth is through the creation of debt. That is not the American was. It is not what capitalism is based on….. And it has crippled our middle class. Completely gutted it out. While at the same time corrupting all manner of institutions; corporations, banks, pensions you name it.”

6:58 – Deist: “Do you think that your average Fed economist would view what the Fed does in terms of interest rate targeting as something that’s not capitalism. That sounds like something out of a Soviet Politburo?

Booth: “I think that… part of the problem……where a disconnect is born that the Fed leaders …..have to be on the receiving end of the policies they make. It is like congress not having to deal with the worst vestiges of Obamacare. They have platinum health plans….. So I think a lot of the leaders at the Fed can delude themselves into thinking that they are doing good-by the people whose financial situations they shepherd, when in fact they are not. But to your other point, they all study the same basic schools of thought and that is what is broken inside of our higher learning institutions.

12:55 – Deist: “Do you think there is any way the Fed can really unwind all the $4 trillion treasury debt or worse on its balance sheet?

Booth: “Unfortunately I think markets have become addicted to the notion, if you will, that every single bond that central banks, world-wide, have purchased. Every single bond has been expunged from the supply forever. Otherwise I don’t think we would have interest rates where they are. I think that the Fed can talk tough about reducing the balance sheet if it wants to play politics and push the economy into recession. But they consider that 4.5 trillion dollars to be their fortress, their power base. The balance sheet has gone to their head.”

13:42 – Deist: “Yellen is in a tough spot…..If she wants to raise interest rates the debt service for Congress can double…..But without raising interest rates, how does she continue to create a market for US treasuries…….She’s in a ship saw.

Booth: “It is an absolute dilemma. But it is a corner into which the Fed has painted itself. There were people on the inside saying it’s a slippery slope if you go to zero. This will not end well. The market is not screaming for lower interest rates. The market is telling you there is a liquidity freeze going on and that it needs other things. If you go to zero, you’re going to introduce distortions and make it extremely difficult, one day, to ever exit. And guess what’s happened. It has become the Achilles heel not just of Janet Yellen and the Federal Reserve, but I would argue the Bank of Japan, Bank of China, The European Central Bank, Mario Draghi. This is a shared global phenomenon.

15:00 – Deist: “Who becomes the central banks banker? Is it some sort of IMF scenario if they can’t work their way out of this?

Booth: “Yes but who funds the IMF. Again there’s nothing elegant I can suggest to you as a way out of this situation……If you speak to the academics who have the same school of thought they will tell you that we will just have to monetize the debt away. that there will be a gentleman’s agreement between the developed countries that have lots of debt ad that we will just walk off into the sunset and everything will be fine. I consider that the last stop on the currency war train and the next stop to be an actual world war…….I don’t think countries that don’t have high debt levels would stand still for it.”

Link to her web site – dimartinobooth.com.

 

EXPLAINING THE FED AND INTEREST RATES.

Related ArticleFederal Reserve Policy Makers Have An Incestuous Intellectual Relationship With Each Other, at austrianaddict.com.

Related ArticleA Tornado vs.  The Fed. Which Is More Destructive, at austrianaddict.com.

Related ArticleThe Role Of Interest Rates In A Market Economy, at austrianaddict.com.

Related Article0% Interest Rate x Eight Years = The Fed’s ZIRP Doesn’t Work, at austrianaddict.com.

Related ArticleWe Can’t Recreate The Garden Of Eden, at austrianaddict.com.

Related ArticleCapital Consumption, aka, Eating Our Seed Corn, at austrianaddict.com.

Must Reads For The Week 2/11/17

February 12, 2017

Human Action Beats Stats In The Super Bowl, by Jeff Deist, at mises.org. Being able to predict the outcome of events relies on how many variables are constant. When human beings are the variables, the predictive nature of stats becomes less effective, if not impossible, because human beings are not constant. Who thought the Patriots were going to win when they were down 28-3? When you looked at the statistical possibilities, you had to conclude there was no way. The face that individual human actors on the field and on the sidelines were making the decisions in the second half made this impossibility all too real. If one of the Patriots 2 point conversions was not successful, or if the Falcons decision to pass late had been successful, the outcome could have been different. The clarity of hindsight allows us to judge if the decision was ultimately correct in bringing about the desired result. But at those particular moments, each decision maker, on the sideline or on the field, thought his action would bring about success, or he wouldn’t have taken his decision. People who say that they wouldn’t have made that decision are speculating about something that can’t be recreated. Can all the particular knowledge and experience of a particular person be recreated in another person? Can the situation at the moment the decision had to be made be recreated? No. It is pure speculation to say you would have taken a correct decision at these particular moments in this game. You may have taken a different decision but that doesn’t mean it would have been successful. There is also another variable that enters into whether a decision turns out as planned. The other team gets a vote on whether you are able to execute your decision as you’ve  planned it. Here is the lesson we should take away from the Super Bowl. If the coaches and the 11 players on one side of the ball can’t make their decisions turn out exactly as planned; Why would we think that the decisions by politicians and bureaucrats, that affect 330 individual actors (non constant variables) aka people, possibly turn out as planned? Thinking that politicians and bureaucrats could make better decisions for people than these people can make for themselves is ridicules. Third party decision making doesn’t work as well as allowing the decision to be taken by the individual most affected by the results of the decision.

Bill Belichick: Entrepreneur, by Tho Bishop, at mises.org. This is a great article about Bill Belichick’s decision making as the general manager and the coach of the Patriots. He has a skill set that makes him “…not only America’s greatest football mind, but one of its greatest entrepreneurs.”

There’s A Global Riot Against Psuedo-Experts”, Nassim Taleb Explains, “This Is Not About Fascism, at zerohedge.com. Excerpt from the article: “I often say that a mathematician thinks in numbers, a lawyer in laws, and an idiot thinks in words….I think you have to draw the conclusion that there is a global riot against pseudo-experts. I saw it with Brexit,  Nigel Farage….. said “the problem with the government was that none of them had ever had a proper job. Being a bureaucrat is not a proper job”.”…….. “When Trump was running for election, I said what he says makes sense to a grocery store owner. Because the grocery guy can say Trump is wrong because he can see where he is wrong. But with Obama, he can’t understand what he’s saying, so the grocery man doesn’t know where he is wrong.

Tightening The Money Supply Will Inevitably Lead To A Bust, by Frank Shostack, at mises.org. The last 8 years of a zero interest rate policy by The Fed, was intended to stop the correction (bust) of the housing bubble. But this housing bubble was caused by the previous money pumping by The Fed via their previous low interest rate policy. The bust is the correction. The correction is good for our economic future. But no one wants it to happen on their watch. In our present political climate, The Fed has a scapegoat in Trump if they want to be released from the blame of crashing the market.

US Government’s 2016 Net Loss “More Than Doubled” To $1 Trillion, at theburningplatform.com. Just another trillion dollar deficit that has to be paid back by the Federal Government taking the first fruits from future production.

Cash No Longer King: Europe Accelerates Move To Begin Elimination Of Paper Money, at zerohedge.com. Central planners want to control everything you do by making everything a digital transaction. Because of this many people will barter for goods and services in a black market system. Over all productivity will decrease which means the standard of living will also decrease. Central planning an economy doesn’t create more wealth. All it does is redistribute the lower of wealth produced by their interventions.

16 Fake News Stories Reporters Have Run Since Trump Won, at the federalist.com. No comment needed. Search this story (click here) and let me know if it is fake or real. I’m not quite sure either way.

CARTOONS from theburningplatform. (More Here)

 

Must Reads For The Week 2/20/16

February 20, 2016

Justice Scalia And Constitutional Fidelity, by Andrew Napolitano, at creators.com. Justice Scalia was a great man and jurist. Here are some excerpts from the article: “Justice Scalia was the modern-day progenitor of the idea….of interpreting the Constitution faithful to the plain meaning of its words. He was utterly and unambiguously faithful to this concept……Justice Scalia argued that the Constitution means what it says; it says it is the supreme law of the land; and all American judges have taken a solemn oath to be subject to what it says. It is superior to the jurists who interpret it…..If the text of the constitution is ambiguous, it then becomes the duty of the jurist to ascertain the original public meaning of the words that form the ambiguity……Ascertaining original public meaning often requires the skills of a historian; yet, thanks to James Madison, the historical record is ample….

The rejection of this line of thinking permits jurists to interpret the Constitution in novel and creative or even destructive ways, according to their own ideologies. It permits them to adapt a meaning in the text that they wish had been there to fortify contemporary societal attitudes…..the job of the jurist, he argued, is not to adapt the text of the Constitution to public trends or cultural changes. That is the job of the Congress and the States through legislation.”

“The Court, he said, was just one creature intended to preserve, protect and defend the Constitution. The Constitution is the court’s creator. No creature can be greater than its creator. He liked the Court. He loved the Constitution.”

Student Loan Debt Collection, At The End Of A Gun, by Scott Greenfield, at mimesislaw.com. Think twice before going into huge debt for college. Government is creating student loan debt serfs. Government will receive tribute payments for years to come. HT  libertypenblog.blogspot.com.

Occupational Licensing Regulations Stifle Job Creation, at reviewjournal.com. When the cost of doing any activity rises, you will get fewer people doing these activities, (just as increasing the minimum wage decreases the employment of minimum wage workers). I have the solution: The Government should start a student loan type of program for the people who have to acquire Government mandated occupational licenses! HT  libertypenblog.blogspot.com.

Tim Cook Says Apple Will Fight Order To Help Unlock iPhone, by Brian Barrett, at wired.com. Instead of getting an Apple engineer to decrypt the particular iPhone used by the San Beradino terrorists and retrieving the information, the Feds want Apple to give them the skeleton key that will unlock all iPhones, not just the terrorists particular phone. Big Government always wants more and more power over individuals. How long do you think Tim Cook can hold up against the resources and force that the Federal Government will bring down on Apple?

How Government Buys Your Support, by James Bovard, at mises.org. Excerpt from the article, “Politicians and bureaucrats realize that addicting citizens to government handouts is the easiest way to breed mass docility and stretch their power.” Politicians aren’t being charitable when they give out government largess. They are stealing, via taxation, from one group and using it to bribe another group.

Why Negative Interest Rates Will Fail, by Frank Hollenbeck, at mises.org. The Fed wants to incentivize banks to loan out the excess reserves they are holding at Federal Reserve Banks, in the hope of stimulating the economy. Unfortunately there is no one to loan these dollars to.

When Cash Is Outlawed, Only Outlaws Will have Cash, at zerohedge.com. Government wants us to use electronic numbers (money) in our bank accounts instead of actual cash. Easier to control and confiscate electronic money than it is cash.

Check Out This Rare Planetary Alignment Before It’s Gone, electronicproducts.com. Mercury, Venus, Saturn, Mars, and Jupiter will be visible starting tonight (2/20/16) in the predawn all month.

five-planet-alignment-2016-01-21

The State Of Drug Use In America, at huffingtonpost.com. This article shows the drug usage in the US. It shows each states use of  tobacco, alcohol, wine, weed, painkillers, heroin, and meth. It also shows the number of deaths from alcohol and drugs.

 

 

 

 

Must Reads For The Week 11/29/14

November 29, 2014
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

How Government Officials Are Using Bank Regulations To Shut Down Industry, at economicpolicyjournal.com. Government regulators are pressuring banks to stop doing business with industries that are not liked by the administration such as firearms makers, payday lenders, ammunition dealers, and others. It’s called Operation Choke Point. It chokes off banking services for these industries with the hope of driving them out of business. Oh that’s right that can’t happen here!

Grab Some Popcorn: Investigators May Have Found Up To 30K Lois Lerner E-Mails, at targetliberty.com. These were found three weeks after the election. In the words of Hilary Clinton, “What difference at this point does it make?”

Obamacare Enrollment Numbers Have Been Bogus, at investors.com. Who among us would ever believe that Government officials would “put their thumb on the scale” in order to get a desired outcome?

The People’s Republic Of San Francisco Is Now Micro-Managing Employee Schedules Of Chain Stores, at economicpolicyjournal.com. There is no limit to what central planners think they can regulate.

58 Experts Who Do Not Believe Global Warming Is A Crisis, at targetliberty.com. These 58 heretics should be burned at the stake for denying the religion of global warming.

SendMyBag Arrives In The In The U.S. To Take Your Luggage When Airlines Won’t, by Steve O’Hear, at techcrunch.com. People are looking for cheaper and more reliable ways of getting their luggage to their destination, and SendMyBag has stepped in to supply the service. Why couldn’t central planners in Government have come up with this idea?

Find A Loving Dog Sitter And Dog Walker, at rover.com. Once again the dynamism of the free market creates a service that people are willing to pay for. This is the Uber idea, for dogs.

Airbnb Is 2014 Company Of The Year, by Bert Helm, at inc.com. This is how technology is bringing buyers and sellers together, creating a more efficient use of scarce resources. Just as Big Taxi is against Uber, Big Hotel will be against this bed and breakfast company.

Uber Against Racial Profiling, by Howard Baetjer Jr., at fee.org. Here is an excerpt from the article, “Uber has a strong incentive to give its drivers the incentive to pick up every rider — black, white, or brown — right away. It does that in two ways. First, it reduces its drivers’ reasons for racial profiling. Uber has each rider’s name, cell phone number, credit card information, and the time and route of the ride, so Uber riders are unlikely to rob drivers.” The free market makes discrimination costly policy.

Saudi Texas: An Amazing Chart Of An Amazing Job Creating State, by Mark J. Perry, at aei.org. If it wasn’t for the jobs created in Texas, the US would have negative job growth since the economic collapse of 08.

Looters Of Trinkets & Looters Of Treasures, at targetliberty.com.

Here is a video of Odell Beckham Jr. making an unbelieveable catch for a touchdown.

 

If you want to know how you make a catch like that, watch this video.

 

How do you get to Carnegie Hall? Practice practice practice.

 

 

 

The Fed Has Proved The Lefts “Trickle Down Straw Man” Doesn’t Work.

October 28, 2014

The left always comes up with words or phrases that ridicule the ideas and/or policies of their opponents with the intent of stopping any intelligent debate about the merits. In the 80’s, the policy of lowering tax rates for the purpose of economic growth, was called “trickle down economics” by the left in an attempt to convince shallow thinking people that this idea couldn’t possibly work. The term “trickle down” has been used by the left since the 80’s to torpedo any economic policy, especially tax cuts.

HILLARY: ECONOMIST EXTRAORDINAIRE

Here is Hillary Clinton using this tactic in a speech yesterday (10/24/14) at a campaign rally for Martha Coakly.  At the start of this short video she says, “…don’t let anybody tell you that, you know, it’s corporations and businesses that create jobs.”, which is similar to the President saying, “..if you got a business, you didn’t build that“, in a campaign speech from the 2012. Mrs. Clinton’s statement reveals either her total ignorance about economics, or her great insight into the economic ignorance of the audience. We could write a post answering this statement, but it’s the next line; “You know that old theory, trickle down economics.  That has been tried. That has failed. That has failed rather spectacularly.”, that this post will be about.

THOMAS SOWELL AND WALTER E. WILLIAMS SPEAK ABOUT “TRICKLE DOWN”

Economist Thomas Sowell has challenged anyone to name an economist from any economic school of thought who had actually advocated a “trickle down theory”. In this article from 2001, Capital Gains And Trickle Down, he states that there is no such thing as “trickle down theory”. The left uses the term to attack tax cuts by saying, their opponents want tax cuts that will help the rich first and the money will supposedly trickle down to the masses. So just to be clear they are saying that letting everybody keep more of what they produce by reducing tax rates is a “trickle down theory”. This theory they created is simply a straw man.

Economist Walter E. Williams talks about the fake war that has been fought against the “Trickle Down” straw man in this article, Trickle Down And Tax Cuts. This is a tactic used by all politicians in which they misrepresent (lie about) an opponents idea or policy, setting up a straw man, in order to argue against this false premise instead of debating their opponent head on. In this case the left sets up the “Trickle Down” straw man to try to win the tax cut argument.

These two articles are really great especially the examples they give. Here are some excerpts from Thomas Sowell’s article.

“But free-market economics is not about “distributing” anything to anybody. It is about letting people earn whatever they can from voluntary transactions with other people.”

“Those who imagine that profits first benefit business owners — and that benefits only belatedly trickle down to workers — have the sequence completely backward. When an investment is made, whether to build a railroad or to open a new restaurant, the first money is spent hiring people to do the work. Without that, nothing happens.”

“Money goes out first to pay expenses and then comes back as profits later — if at all. The high rate of failure of new businesses makes painfully clear that there is nothing inevitable about the money coming back.”

” No one who begins publishing a newspaper expects to break even — much less make a profit — during the first year or two. But reporters and other members of the newspaper staff expect to be paid every payday, even while the paper shows only red ink on the bottom line.”

“In short, the sequence of payments is directly the opposite of what is assumed by those who talk about a “trickle-down” theory.”

Here are some excerpts from Walter E. Williams article.

“Trickle down is a nonexistent theory. Those who use it simply argue against a caricature rather than confront an argument actually made.”

“You can bet that the White House has people reading every bit of the news, including this column and Dr. Sowell’s article. You can bet some people in the news media will read it, as well. Despite the facts that Sowell has marshaled, they will continue to use trickle down theory and “tax cuts for the rich” demagoguery, even though they now have hard evidence to the contrary, because they can count on widespread gullibility and inability to do critical thinking.”

THE FEDS MONETARY POLICY, IS THE TRICKLE DOWN STRAW MAN

Getting money in the hands of the rich with the idea that it will trickle down through the rest of the economy is the straw man the left says won’t work. They are correct. The Feds loose money policy since 2000 is proof that it doesn’t work. Instead of letting individuals keep what they produce by lowering taxes, the Fed electronically prints counterfeit money and gives it to the top 1%. The Fed has printed a total of  $7 trillion since 2000 (click here) with $4 trillion of that being printed since 2008. Click here to see what has happened to the real median household income since this counterfeiting started before 2000. It has gone down.

The Fed injects electronically printed counterfeited money into the economy by purchasing mortgage-backed securities, from banks, and treasury bonds, from the Federal Government. The banks and the Federal Government have first access to the counterfeit money. Everyone in the immediate orbit of the banks and the Federal Government benefit secondarily from this printed money, you and I don’t benefit. Look at the charts in this article, Abolish The Engine Of Inequality: The Federal Reserve, by Charles Hugh Smith. They show that the  income and wealth of the people with access to the Feds counterfeit money has grown. And the wealth of the rest of us is stagnant or shrinking. The more the Fed prints the bigger the gap.

CONCLUSION

The Feds experiment of giving their counterfeit money to the people at the top and hoping it will trickle down has been going on since before the tech bubble popped in 2000. The tech bubble lead to the housing bubble that popped in 2008, which lead to the current financial bubble that will eventually liquidate itself at some point. The counterfeiting by the Fed created these bubbles in the first place. In the words of economist extraordinaire Hillary Clinton, “It has failed rather spectacularly“. She is correct. Trickle down economic theory defined by the left, as giving money to the wealthy in the hopes that it will trickle down, doesn’t work. Unless the goal was to make the first receivers of the money wealthier at the expense of the rest of us. But who could possibly be cynical enough to think that?

 

Related ArticleReal Savings vs. Counterfeit Savings, by austrianaddict.com.

Related ArticleA Tornado vs. The Fed, Which Is More Destructive, by austrianaddict.com.

 

 

 

 

Must Reads For The Week 6/28/14

June 28, 2014
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

FEDERAL RESERVE,  MUST READS OF THE WEEK

 

Lets start with some humor, because the rest of the post isn’t very funny. I saw this video, Money Is Our God, by Tom Simmons, on Libertas Project / Facebook. Tom Simmons has the Federal Reserve figured out.

 

The State Of The Union: A Friendly Reminder Where We Stand Now, at zerohedge.com. These charts show how the Fed is attempting to keep the economy propped up with electronically printed counterfeit money. Their original money pumping caused the very problem their present money pumping is supposed to cure. It’s like an NFL player getting a concussion from a helmet to helmet hit, and trying to cure it by punching him in the face..

The Fed’s Hobson’s Choice: End QE And Zero Interest Rates or Destabilize The Dollar And The Treasury Market, by Charles Hugh Smith, at oftwominds.com. The Fed has been printing counterfeit money to purchase debt, and artificially keeping interest rates low in order to incentivize borrowing which is at record pace over the last 5 years. Policy makers at the Fed believe in the Keynesian theory that spending {consumption} stimulates production. But Say’s law of markets states, “One can only buy with what one has produced….The one product constitutes the means of purchasing another….”  In the market, production spending is always ahead of consumption spending. But when the Fed stimulates Keynesian consumption, without any corresponding production, it misallocates resources. Economic forces are trying to correct the misallocations brought about by the Feds counterfeiting. These forces will eventually prevail no matter how much the Fed tries to prop up it’s false reality with fake money.

The Civilian Employment -Population Ratio Chart, from the FRED {Federal Reserve Economic Data}. This chart represents the proportion of the civilian noninstitutional population that is employed. This next chart shows the total Civilian Noninstitutional Population, which includes two groups of people who are not working, 1) people under 25,  2) retired people. This chart, Civilian Noninstitutional Population – 25 to 54 years, shows people in their prime working years. Now look at the M2 Money Stock chart. If we look at all of the charts starting from March of 95 to the present, here is what we see. The Fed has increased M2 money stock from $3.49 trillion to $11.22 trillion which is almost $8 trillion. During the same time period the ratio of employed people has decreased from 63.1% of the civilian population working, to 58.9% of the civilian population working. The civilian population has increased  from 198 million to 247 million. These numbers show that the Feds policy of electronically printing counterfeit money is a miserable failure, if its goal is to increase employment and keeping inflation in check. But the Fed’s zero interest rate policy, along with its policy of Quantitative Easing {electronically printing counterfeit money},works perfectly if the goal is to enrich the people who have access to this money first. But it doesn’t matter if that’s the goal or not, the result is still the same. ( The two articles below help explain fake inflation numbers, and enriching those with first access to this counterfeit money.)

Former Fed Governor Warsh Slams Fed’s “Reverse Robin Hood” Policies, at zerohedge.com. Reverse Robin Hood is a great way to explain this. People who don’t have access to this counterfeit money have had the value of what they own stolen. Counterfeiting is theft, even if, in the case of the Fed, it is legal.

Wow: Fed Economist On Fudging Price Inflation Data, at economicpolicyjournal.com. You can make the aggregate inflation rate look great if you don’t count sectors of the economy where the prices are obviously skyrocketing. You can’t believe the numbers stated in the headlines. You have to dig into the numbers to find what is really going on.

 

UNFORTUNATELY THE JOKE’S  ON US.

 

 

“Money For Nothing”, by Liberty Street Films. A Documentary Film About The Fed.

August 27, 2013

“Money For Nothing” is a documentary film about the Federal Reserve made by Liberty Films Inc. If it wasn’t for the Mises Institute, and Ron  Paul  hammering the Fed over many years, a film like this would have never been considered, let alone made. I don’t know how much truth, or what angle the documentary will take, but any light that can be shined on the Fed, making people curious about understand it, is a plus for liberty. Here is a trailer for the movie.

Here are some excerpts from the trailer.

“I don’t think that any of us that ever worked at the Fed take any comfort from the fact that somebody screwed up, but its important that we recognize there were some big mistakes made.” – Peter Fisher, Executive V.P. Federal Reserve Bank of N.Y. (94-01)

“Printing money doesn’t produce goods and services, it doesn’t hire people….It may seem like the right short-term medicine, but can the cure be worse than the disease in some cases.” – Charles Plosser, President Federal Reserve Bank of Philadelphia.

The United States has consumed more than it has produced for at least a decade. What country, ask yourself, in history can do that indefinitely forever.” – Tom Hoenig, President Federal Reserve Bank of Kansas City.

When asked in an interview, “You have what degree of confidence in your ability to control this“, Ben Bernanke said, “one hundred percent”.

This comment by the Fed chairman demonstrates what F. A. Hayek called, the “fatal conceit”, which is the idea that “man is able to shape the world around him according to his wishes”. A man, or a group of men, don’t possess enough knowledge to plan an ever-changing world.

As John Maynard Keynes wrote, “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” ,read more in Keynes Was Correct In 1919!

Here is a short clip from the movie.

It is supposed to open in limited markets in September, read more at,  moneyfornothingthefilm.org.

Related ArticleFederal Reserve Policy Makers Have An Incestuous Intellectual Relationship With Each Other, at austrianaddict.com

Related ArticleCounterfeiting by The Federal Reserve, Although Legal, Still Results In Theft, at austrianaddict.com

Related ArticleThomas Sowell’s Take On The Federal Reserve, at austrianaddict.com

Related ArticleReal Savings vs. Counterfeit Savings, at austrianaddict.com

Related ArticleA Tornado vs. The Fed, Which Is More Destructive, at austrianaddict.com

Related ArticleWe Can’t Recreate The Garden Of Eden, at austirnaddict.com.

Related Article, The Role Of Interest Rates In A Market Economy, at austrianaddict.com