My Speech Delivered at the New York Federal Reserve Bank

Economic Policy Journal ^ | April 25, 2012 | Robert Wenzel

[PuzzledInTX]

[SNIP]...

Intellectual discourse is, of course, extraordinarily valuable in reaching truth. In this sense, I welcome the opportunity to discuss my views on the economy and monetary policy and how they may differ with those of you here at the Fed.

That said, I suspect my views are so different from those of you here today that my comments will be a complete failure in convincing you to do what I believe should be done, which is to close down the entire Federal Reserve System.

My views, I suspect, differ from beginning to end... [SNIP]... I stand here confused as to how you see the world so differently than I do.

I simply do not understand most of the thinking that goes on here at the Fed and I do not understand how this thinking can go on when in my view it smacks up against reality.

[SNIP]

In the science of physics, we know that water freezes at 32 degrees. We can predict with immense accuracy exactly how far a rocket ship will travel filled with 500 gallons of fuel. There is preciseness because there are constants, which do not change and upon which equations can be constructed.

There are no such constants in the field of economics since the science of economics deals with human action, which can change at any time. If potato prices remain the same for 10 weeks, it does not mean they will be the same the following day. I defy anyone in this room to provide me with a constant in the field of economics that has the same unchanging constancy that exists in the fields of physics or chemistry.

And yet, in paper after paper here at the Federal Reserve, I see equations built as though constants do exist...

more

[PuzzledInTX]

Please read the whole speech at the link, it is well worth your time. This is not MY speech, but Robert Wenzel's. This is incredible, courageous truth. Wish I could see the audience reaction and if anyone had ears to hear. It's a wonder that Mr. Wenzel is still standing.

[Red Badger]

There are no absolutes.........

[the invisib1e hand]

Let’s have one good meal here. Let’s make it a feast. Then I ask you, I plead with you, I beg you all, walk out of here with me, never to come back. It’s the moral and ethical thing to do. Nothing good goes on in this place. Let’s lock the doors and leave the building to the spiders, moths and four-legged rats.

last one out take the gold.

[Tublecane]

We should dump copies of “Human Action” on Ben Bernanke from a helicopter. But it’s not about him, really. All of congress, the white house, SCOTUS, state and local governments, economists, academia in general, the intellectual class in general, members of the MSM, and the public at large ought to be familiar with the impossibilty of economic calculation without free market prices.

[PuzzledInTX]

"last one out take the gold."

What gold? No one has seen it.

Yet, America’s gold is off limits to seemingly everyone and has never been properly audited. Doesn’t that seem odd to you? If nothing else, does anyone at the Fed know the quality and fineness of the gold at Fort Knox?

[lurk]

Solzhenitzyn observed decades ago that collectivism is an economic model and simply that. It fails to factor in human behavior, and hence, fails.

[Brandybux]

Let’s lock the doors and leave the building to the spiders, moths and four-legged rats.

Rather than the two-legged rats that currently occupy the place, no doubt!

LOLOLOLOL

[the invisib1e hand]

Solzhenitzyn observed decades ago that collectivism is an economic model and simply that. It fails to factor in human behavior, and hence, fails.

for all but a few, eh?

Anyway, quants know this, but they get paid to create products.

[Reverend Wright]

I don’t think this guy has any more answers than Bernanke. Here is a takeaway quote from his speech:

“.Austrian business cycle theory (ABCT), developed by Mises, Hayek and Rothbard, has warned about all these things. According to ABCT, it is central bank money printing that causes the business cycle...”

Here is the problem, there was all kinds of business cycles in the 19th century (and more extreme than the 20th century).

http://www.nber.org/cycles.html

I think any sensible person should be skeptical of this guy, and not give him a pass on nonsense just because he is a “conservative”

[LearsFool]

It's a wonder that Mr. Wenzel is still standing.

No, it's an indication that he poses no threat.

This speech is like writing a letter to one's congressman. It "sends a message". (In other words, it accomplishes nothing except to make us feel better.)

[PuzzledInTX]

I, for one, feel much better, knowing that there are still real men out there with balls to face the beast.

[griswold3]

To the list you cited (congress, the white house, SCOTUS, etc...) “I stand here confused as to how you see the world so differently than I do.”

[Whenifhow]

The speech was also posted on the link below and included the “afterword” which describes the audience reaction to the speech and the Q & A after the speech.

http://mises.org/daily/6028/New-York-Fed-Leave-the-Building

[PuzzledInTX]

Thanks for the link! I’ve been anxious to see how this was received.

[Repeat Offender]

What gold? No one has seen it.

*Yet, America’s gold is off limits to seemingly everyone and has never been properly audited. Doesn’t that seem odd to you? If nothing else, does anyone at the Fed know the quality and fineness of the gold at Fort Knox

Read the two sentences before it -

In this very building, deep in the underground vaults, sits billions of dollars of gold, held by the Federal Reserve for foreign governments. The Federal Reserve gives regular tours of these vaults, even to school children.

The other poster was referring to the last one out of the FED building, not Ft Knox.