"MONEY IS TOO IMPORTANT" to Trust with Central Bankers!

FinancialSense ^ | December 12, 2006 | Gary Dorsch

[GodGunsGuts]

The late Nobel Economic laureate Milton Friedman once remarked, “Money is too important to be left to central bankers. You essentially have a group of unelected people who have enormous power to affect the economy. I’ve always been in favor of replacing the Fed with a laptop computer, to calculate the monetary base and expand it annually, through war, peace, feast and famine by, perhaps, a predictable 2 percent,” Friedman said.

[ml/nj]

So who does Friedman think gets to print the money?

ML/NJ

[GodGunsGuts]

The first chart is a little dated. The dollar is now down to .82 and has formed a very bearish head and shoulders formation (as can be seen on the second chart). Although, the FED/Central Bankers are only part of the problem. Our profligate congress is also destroying the USD in the form of massive deficits. But then again, our fiat money system helps make that possible too:

[Jack Black]

Dow (DJI) in Red, Gold ETF (IAU) in Blue.

[GodGunsGuts]

The treasury.

[GodGunsGuts]

Let's not forget the HUI:

[ml/nj]

That's really comforting!

(Folks should realize that the treasury already prints money in the little dance they do with the Fed. The Treasury prints bonds and bills and the Fed buys them with their bills. The only significant "asset" the Fed holds is the paper from the Treasury. I like to refer to this paper as "I owe me's.")

ML/NJ

[Jack Black]

Most impressive. I've given back a little but am hanging in there. What's the alternative? Greenspans? No thanks.

[Jack Black]

"I knew I should have stayed in the private sector and listened to Ayn."

[traviskicks]

bookmr

[sure_fine]

"So who does Friedman think gets to print the money?"





I got a nice little HP printer here with lots of ink,, think that would work; you know, exercise my right to individualism?







/sarc

[traviskicks]

Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.

[Eric Blair 2084]

Let me take a wild guess...you're a Technical Analyst as opposed to a Fundamental Analyst.

My idol Friedman, God rest his soul, was right. Every time Bernanke opens his mouth the market reacts. He's an intellectual and doesn't understand the power he has. Greenspan was a genius because he could talk for hours and use technical terms to the point where the Senate committee was either confused or bored to tears. Nobody dared ask a question for fear of looking stupid.

Bernanke needs to learn how to use the term "conundrum" in a sentence. Like Friedman implied: with a computer you wouldn't have that problem.

[Eric Blair 2084]

Monetary policy, such as selling Treasury bonds on the open market or raising or lowering the Fed Fund rate, which Friedman almost single handedly pioneered has nothing to do with the "printing of money". You know that.

[ml/nj]

Monetary policy, such as selling Treasury bonds on the open market or raising or lowering the Fed Fund rate, which Friedman almost single handedly pioneered has nothing to do with the "printing of money". You know that.

Actually "monetary policy" is all about printing money. Raising and lowering the Federal Funds rate merely has to do with how fast they turn the crank. When the Fed buys Treasury bonds they are putting more Federal Reserve Notes into circulation. I would call this "printing money" even though it is most often a blip in a computer somewhere.

ML/NJ