By James Longstreet
The Austrian School of Economics would be quick to note that central planners create a condition in the marketplace, a moment where some “know” and some “don’t know” of a central planning decision. It is one of the great dangers of central planning, and also one of continual largess for others.
The Federal Reserve, that body that is not federal, nor does it have reserves, is such a central planner.
Its official releases via Federal Open Market Committee minutes of actions and attitudes of the Fed with the random comments by the governors of the Fed are market-moving events. Billions if not trillions change hands on this information, these “insights.” Rand and Ron Paul have championed the “audit the Fed” movement, and have gained support from both sides of the aisle. But what has become crystal-clear of late is how powerless Congress is in its attempted dealings with the Federal Reserve.
With the notion that we are on the verge of negative interest rates, a situation in which depositors pay the banks for holding deposits, and realizing that the Fed is essentially operated by bankers, raises red flags. But a less complicated matter, one challenging the integrity of the Fed and its control over sensitive information, sensitive by its own design, is on the table for all to see........
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The Austrian School of Economics would be quick to note that central planners create a condition in the marketplace, a moment where some “know” and some “don’t know” of a central planning decision. It is one of the great dangers of central planning, and also one of continual largess for others.
The Federal Reserve, that body that is not federal, nor does it have reserves, is such a central planner.
Its official releases via Federal Open Market Committee minutes of actions and attitudes of the Fed with the random comments by the governors of the Fed are market-moving events. Billions if not trillions change hands on this information, these “insights.” Rand and Ron Paul have championed the “audit the Fed” movement, and have gained support from both sides of the aisle. But what has become crystal-clear of late is how powerless Congress is in its attempted dealings with the Federal Reserve.
With the notion that we are on the verge of negative interest rates, a situation in which depositors pay the banks for holding deposits, and realizing that the Fed is essentially operated by bankers, raises red flags. But a less complicated matter, one challenging the integrity of the Fed and its control over sensitive information, sensitive by its own design, is on the table for all to see........
Read more
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