What the Yellen vote will tell us about today's Republican Party
http://www.foxnews.com/opinion/2013/11/14/what-yellen-vote-will-tell-us-about-today-republican-party/
The truth is that neither economic theory nor evidence suggest that creating so much new money will create sustainable new employment. Bernanke has pointed to stock market gains as evidence for success, but there is also little correlation between such gains and employment growth. This particular brand of “trickle down” economics simply does not work.
In the long run, what the Fed has done is to clamp ever tighter price controls on interest rates, which are among our most important prices.
Even a beginning level economist knows that price controls do not improve an economy. They destroy it.
Yep and it is a false signal. When will the ride suddenly stop? Better to have let interest rates rocket up, new entrants would have replaced the bank’s credit at higher rates and then those rates would begin to fall and the market would stabilize. It would have saved us trillions in wasted government transfer payments. It would have stopped the behemoth’s growth, ended deficit spending and sharply reduced the power of government. Who’s the FED working for?
The velocity of money has crashed and is staying in the cellar despite all the FED and FEDGOV are doing. Why? People know that government money is fake. It’s noise, not signal. The insiders gain at the expense of the rest of us. It’s a mess. The government is so beholden to so many interest groups that the way out will be disastrous no matter what.
I wish Calvin Coolidge were President, but I don’t think America would elect anyone not-Santa Claus.