A Rebellion at the Federal Reserve? (Must of read Krugman)

The Atlantic ^ | May 2, 2012 | Matthew O'Brien

[C19fan]

Chicago Federal Reserve president Charles Evans doesn't look the part of a heretic. But in the cozy, conservative club that is central banking, he certainly qualifies. While most of his colleagues at the Fed have recently taken an even more hawkish turn, Evans remains a champion of additional monetary stimulus. And on Tuesday he took an even bigger step: He became the first sitting Fed member to endorse nominal GDP (NGDP) level targeting.

Sounds wonky? It is. But here's why Evans' suggestion is also extremely bold. The Fed famously has a dual mandate: It's supposed to promote the maximum level of employment consistent with its two-percent inflation target. In reality, this dual mandate often looks more like a single inflation mandate. NGDP level targeting would do away with this problem by rolling the mandates together. And right now, that would mean a much more aggressive Federal Reserve.

[GOPJ]

So this guy’s biggest fear is deflation?

[JAKraig]

So this guy’s biggest fear is deflation?
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The Phillips curve was debunked by Milton Friedman, the best economist the world has seen since Adam Smith.

Governments can only effect economies for good in a very short time span, after that they cause ruin. In trying to protect from ruin after their mistakes they only cause more ruin.

The US capitalist system has been the goose that laid the golden egg for the world for the last 200 years. We are killing the goose.

While it is possible to have deflation, if we did have it it wouldn’t last long. The dollars are already let out, someone has them and are only waiting until the right time to use them to buy up everything they can at fire sale prices. That is why I tell people to convert all the money then can into precious metals.

Get out of debt. Even mortgage debt. Financial institutions will call loans when they get short on money. they won’t be interested in refinancing and if they do it will be for horrendous rates. Get out now while you can.

The radical Democrats that infest our government who have been elected by the ignorant electorate who have been purposely kept ignorant by the press and education system are all about the ruin of our economy. They want the US Capilist system to fail so that they can take over and manage who gets what. In other words they want you to treat them well and they will let you eat.

The only way to be secure is inflation proof money and getting out of debt.

Do I know how crazy I sound? Yes, I realize how it sounds but it is the handwriting on the wall that I see.

[monocle]

It is the easiest thing to be a critic but it is far more difficult to create something, even if not perfect. Even your attempted analogy, which I fail to see its relevance, demonstrates how easy it fault others. I challenge you to provide a meaningful and perfect alternative to the present system.

[mjp]

STOP WORRYING AND LEARN TO LOVE INFLATION

Inflation is an assault on the purchasing power of the dollar,a destruction of capital, and a redistribution of wealth from creditors to debtors and from new, late holders of money to older, earlier holders of money. It results in economic decline and decay,decrease in total productive ability and decreased accumulation of capital,decrease in the real rate of profit, and the impoverishment of wage earners.

[Yollopoliuhqui]

Discussion about Federal Reserve policies is an exercise in programmed ignorance. It is not a Federal institution. It is privately owned and most of the owners are foreign banks. Yet they print our money and dictate the health of our economy. The Fed is nothing but a monetarist swindle cartel and needs to be disassembled in the next 10 minutes. Read the book “The Creature from Jeckyl Island” to see how globalist banking elites play us for suckers and fools every day of the week.

[Ratman83]

If Congress would do the job that was assigned to it by the Constitution it would be better. Since Congress pass the job off to someone else, there is now no way to hold the Fed responsible for their actions. Additionally the congress now says it is not our fault but it is because they are not doing the job.

This would be meaningful because the Congress would be beholden to the people. Nothing is perfect but the Federal Reserve is beholden to none and it is a disaster.

[monocle]

Assuming Congress would take over the duties of the Federal Reserve, what guarantees can you point to which insure Congress would act in a responsible fashion. There will always be times, such as the late seventies and the early eighties when both unemployment and inflation were highly worrisome. Solutions to these two concerns presented a dilemma does Congress bow to a major Democrat constituency or a major Republican constitueny?

`I would be more worried about populism controlling our financial sector. Congress still retains oversight over the Federal Reserve as is confirmed by the ongresshearings before Congress. I suspect that Congress ceded power to the Federal Reserve so members of Congress could avoid blame for financial problems - so much for Congress being beholden the people.

[Ratman83]

There are no guarantees but at least Congress can be voted out for not doing their job.

I would be more worried about populism controlling our financial sector. As it is now a non-elected private body is helping to ruin the economy and the financial sector. All the while personally benefiting financially from the havoc they create.

Congress still retains oversight over the Federal Reserve as is confirmed by the hearings before Congress. Congress has oversight of many things and they are all going to crapper because Congress does not do what they are supposed to do.

I suspect that Congress ceded power to the Federal Reserve so members of Congress could avoid blame for financial problems - so much for Congress being beholden the people. That is true but just because someone else allowed Congress to skip its duties does not mean we should also allow them to continue in this.

[monocle]

Look at who the people elect to Congress and the incumbency of the members of Congress.

If the recent polls showing Congress' unfavorable ratings being so high and if large numbers are returned to office in November, what does that tell you about Congress being beholden to the people?

[Ratman83]

So it is ok by you for even more nameless and uncontrolled people to run the fed. You can go on believing in the Fed, not me.

I would like to see the Fed gone and I have told my Representative and my Senators that the Fed should be removed. They continue to ignore me but one is retiring and one is in a fight for his seat so we shall see what happens.

[Stentor]

If Congress would do the job that was assigned to it by the Constitution it would be better.

Exactly. And only the job authorized by the Constitution. I'm trying to get my head around the idea of the Founders' view of some academic rat bastard who represents private banks being in control of absolutely everything. I don't care what kind of "job" he's doing.