Posted on 04/30/2012 2:53:27 PM PDT by 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
(Excerpt) Read more at economicpolicyjournal.com ...
There are no absolutes.........
last one out take the gold.
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.
What gold? No one has seen it.
Yet, Americas gold is off limits to seemingly everyone and has never been properly audited. Doesnt that seem odd to you? If nothing else, does anyone at the Fed know the quality and fineness of the gold at Fort Knox?
Solzhenitzyn observed decades ago that collectivism is an economic model and simply that. It fails to factor in human behavior, and hence, fails.
Rather than the two-legged rats that currently occupy the place, no doubt!
LOLOLOLOL
for all but a few, eh?
Anyway, quants know this, but they get paid to create products.
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”
I, for one, feel much better, knowing that there are still real men out there with balls to face the beast.
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.”
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
Thanks for the link! I’ve been anxious to see how this was received.
*Yet, Americas gold is off limits to seemingly everyone and has never been properly audited. Doesnt 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.
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