For those not familiar with the most powerful unelected body in the United States government, the Federal Reserve’s founding mandate was to monitor inflation and maintaining stable prices; it way off its mandate as we consider the OMC (open market committee, this is the conversation that several Federal Reserve members have among themselves.) The single most competent critic of the Federal Reserve is Dr. Allan Meltzer. He has long asked/demanded that the Federal Reserve adopt formal price rules to guide its monetary decisions. Tuesday’s meeting reveals that its doing just that OUTSIDE ITS ORIGINAL MANDATE.
How else to put it: This Federal Reserve is preventing the appropriate authorities NAMELY CONGRESS from acting in the best interest of the American People. Federal Reserve intervention as an authority permits Congress to sit out managing its own mandate! Congress is abdicating! We are witnessing the arrival of Marxian autocrats managing our economy in our best interests defined ideologically instead of unleashing the American Republic through incentives as Hayek proposed and defended so eloquently.
Tuesday’s meeting reveals that the Federal Reserve wants more INFLATION! It defended this by revealing its desire to promote maximum employment and price stability. MAXIMUM EMPLOYMENT WAS NEVER THE FED’S MANDATE!
Historically, the Federal Reserve was worried about deflation, or a fall in prices. Most American’s would actually appreciate deflation. The chief problem with deflationary pressures is control. No one can stop it when it begins. With rising commodity prices and Gold at $1,300 an ounce, there is no deflation. What we are witnessing is the Federal Reserve arrogating to itself a new mandate: maximum employment.
How will they do it? By purchasing assets. By quantitative easing. BY PRINTING MONEY.
Does any of this make sense? It shouldn’t! Quantitative Easing destroys currencies and unhinges prices. With more money in circulation prices will rise!
Dr. Allan Meltzer put it best: “Monetary policy can’t compensate for Washington’s current mix of bad fiscal, tax and regulatory policies.” The Federal Reserve is losing both its credibility and independence. The Federal Reserve cannot do what is the responsibility of Congress.
What we have now is a politicized Federal Reserve and a deeply politicized monetary policy regime that views itself as unelected autocrats.
THERE WILL BE GREAT POLITICAL PUNISHMENT IN NOVEMBER! THE UNITED STATES WAS NEVER MEANT TO BE RUN BY TECHNOCRATS.
WHAT ARE WE WITNESSING? THE COMPULSORY NATURE OF CENTRALIZATION! THESE KIND OF IDEOLOGUES SIMPLY CANNOT IMAGINE AN UNDIRECTED SOCIAL ORDER!