Call Me Stormy

Finding righteous currents in turbulent times

Archive for the tag “Federal Reserve”

Crony Capitalism and the Fed

What’s behind the sluggish economy? A corrupt form of crony capitalism in which the Federal Reserve lines the pockets of the richest bankers, while destroying the economic fiber of the nation. Pundit Dick Morris explains.

The American Dream

Tad Lumpkin uses animation to explain the collapse of the American dream. Borrowing from an eclectic mix of sources — from A Christmas Carol to Back to the Future and Gladiators — Lumpkin pins our stagnant economy on lax monetary policy, overspending by the US government and, most of all, the predatory excesses of the centralized Federal Reserve Bank. Some of the hints of conspiracy are a bit much, as in the suggestion that it was bankers, not mobsters or Communists, who likely assassinated JFK. These instances of hyperbole aside, the 2011 film is still quite good as a primer on how our banking system works and how it’s subject to manipulation.

Fed Tamps Down Interest Rates

This just in…The Federal Reserve announced it will keep interest rates low until America’s unemployment rate falls below 6.5 percent. “So, in other words, the Fed will keep interest rates low until after Obama’s presidency,” says Jodi Miller. She also touches on former Florida Gov. Charlie Crist’s conversion as a Democrat and a woman busted for her breast implants in this edition of NewsBusted.

The Fed Under a Microscope

Steve Horwitz, an economist from St. Lawrence University in New York, says the Fed is under increasing scrutiny as it plays a larger and more sweeping role in trying to shape the economy. “In the 25 years since I’ve been studying central banking and competitive alternatives, there’s never been so much attention on the Fed as there is right now, and there’s never been so much critical attention,” says Horwitz.

The economist favors a diminished role for the Fed, possibly even including its abolition. He discusses his views with Nick Gillespie from Reason TV.

Should We End the Fed?

Lawrence H. White, an economics professor at George Mason University in Fairfax, Virginia, calls for abolishing the Federal Reserve. That might sound like a heretical position, but White knows whereof he speaks, having an expertise in the history and theory of free banking. He cites several examples of countries that thrived without a central bank, among them, Hong Kong, Switzerland, Canada, Scotland and Sweden.

White favors getting rid of the Fed because he believes the reserve bank has overstepped its bounds by improperly tweaking monetary policy, greatly aggravating if not creating many of the speculative boom-and-bust cycles that have wreaked havoc with the American economy. In the absence of a central bank, he favors an aggregation of private banks, financial institutions and regional clearing houses assuming key essential tasks now performed by the Federal Reserve, including fund transfers between banks and issuance of currency. H/T

Operation Screw

Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc., says the Federal Reserve Bank “has checked into the Roach Motel of monetary policy” with its new plan to buy $40 billion worth of high-risk debt monthly at low interest rates for an indefinite period of time. In an interview with Reason TV, Schiff says the net effect of the plan will be to reignite the housing bubble, cause dangerous speculation and depress the value of the dollar. He calls the QE3 decision “a day that will live in infamy,” announcing that the Fed has “sealed its fate” and put “the final nail in U.S. dollar and the entire American economy.” Here is his latest Schiff Report.

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