"Those lawmakers who advocate “Ending the Fed” might better turn their considerable talents toward ending the fiscal debacle that has for too long run amuck within their own house. The Fed does not create government debt; fiscal authorities do. Deficits and the unfunded liabilities of Medicare and Social Security are not created by the Federal Reserve; they are the legacy of those who control the purse strings―the Congress, working with the president. The Fed does not earmark taxpayer money for pet projects in local communities that taxpayers themselves would never countenance; only the Congress does that. The Congress and administration play the dominant role in creating the regulatory environment that incentivizes or discourages job creation. "
I somewhat dissagree with him on the role of taxation and regulation in the export of jobs overseas. While that can certainly play a role, he fails to mention the impact of giving open access to our markets and failing to get the same in return. Our the impact on our economy of trading with countries that only have excess labor to offer when our own employment is less than full. We could remove all taxation and regulations and still not be able to compete with China's wage of $2/day.
China is a government controlled economy, those are slave wages. The dollars are not allowed to return to the US economy to buy goods, but rather are focused into buying our debt and into buying military strategic and economically strategic companies.
It's not in the US interest to do that much trade with China. The costs to the US are larger than the price difference that the consumer sees.
This gets back to my feelings that the Fed is the enabler.
That Fedgov would of long since hit the wall, either in the bond fund, or voting booth. Certainly right now where the Fed is buying so many Treasury notes, and being the trash can for trash Fannie/Freddie so called ‘securities’.
Anyway, is it still your notion that the Fed is ‘independent’? Or is it a political player?