Posts Tagged ‘ Federal Reserve ’

Banking on aggression

December 16, 2015
posted by

Mary Ruwart Ruwart.com
by Mary J Ruwart  

"The Federal Reserve is probably the most powerful cartel in the world. Most people think it is a government agency; in fact, it is an organization of private bankers. The US government has given it a monopoly on US currency, which it can inflate or deflate at will. Virtually overnight, the Fed, as it's often called, can destroy the US economy, creating boom and bust cycles. As goes the United States, goes the world." (12/14/15)

http://www.ruwart.com/blog/banking-on-aggression-from-the-cliff-notes-version-of-healing-our-world.html  

No Comments »

The problem with the Fed’s economic stimulus

December 2, 2015
posted by

Reformed Libertarian
by C Jay Engel  

"The United States' central bank, The Federal Reserve (or 'Fed' for short), has, for the past 8 years, attempted to reinvigorate the US economy by undertaking various efforts to suppress interest rates below their natural and market levels. Interest rates literally represent the cost of borrowing money and, like all other prices such as those for shoes and beef and toothpaste, can and should be set via the free exchange of millions of people throughout the economy on the free market. This is the fundamental economic principle of Supply and Demand: that prices move up and down due to variations in the relationship between these two components of exchange. No government body via intervention into the market can eradicate the law of supply and demand; just like government intervention against the supply and demand relationship would cause problems in the shoe or beef markets, so it causes problems in the interest rate markets." (12/01/15)

http://reformedlibertarian.com/blog/the-problem-with-the-feds-economic-stimulus/  

No Comments »

The problem with “rules-based” monetary policy

November 30, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Tommy Behnke  

"The Taylor Rule is no more accurate at determining interest rates than meteorologists are at forecasting the weather. The only difference between the two is that weathermen are precise on occasion, whereas the federal funds rate under the Taylor Rule is, at best, less wrong. Setting the price of money and credit in the name of unleashing the economy's supposed potential output is the equivalent of enacting price controls on milk to unlock its full buying power. It's a fallacy that cannot be achieved." (11/30/15)

http://mises.org/library/problem-rules-based-monetary-policy  

No Comments »

The Fed is above the law

November 24, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"This post may upset some people, but I am simply trying to describe the world as it is, not as I would wish it to be. I recently spoke with Ryan Hart, who is researching the legal status of Fed policy. That got me thinking about the Fed's mandate, and whether it is legally enforceable." (11/24/15)

http://econlog.econlib.org/archives/2015/11/the_fed_is_abov.html  

No Comments »

Is the Fed due for downsizing?

November 23, 2015
posted by

Anthony Wile The Daily Bell
by Anthony Wile  

"Politico tells us that the 'Fed pushes back as Congress eyes its billions' and that 'Congress is aiming to take billions out of the Fed's accounts to help pay for a new highway and transit bill.' Beyond explaining the intentions of Congress in this regard, the article speculates on why the Fed hasn't been more vocal about Congress's intended raid on its coffers." (11/21/15)

http://www.thedailybell.com/editorials/36652/Anthony-Wile-Is-the-Fed-Due-for-Downsizing/  

No Comments »

Does the bell toll for the Fed?

November 10, 2015
posted by

Ron Paul Campaign For Liberty
by Ron Paul  

"Last week Federal Reserve Chair Janet Yellen hinted that the Federal Reserve Board will increase interest rates at the board's December meeting. The positive jobs report that was released following Yellen's remarks caused many observers to say that the Federal Reserve's first interest rate increase in almost a decade is practically inevitable. However, there are several reasons to doubt that the Fed will increase rates anytime in the near future." (11/09/15)

http://www.campaignforliberty.org/ron-paul-bell-toll-fed  

No Comments »

The Fed desperately tries to maintain the status quo

November 5, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Ronald-Peter Stoferle  

"During the press conferences of recent FOMC meetings, millions of well-educated investment professionals have been sitting in front of their screens, chewing their fingernails, listening as if spellbound to what Janet Yellen has to tell them. Will she finally raise the federal funds rate that has been zero bound for over six years?" (11/04/15)

https://mises.org/library/fed-desperately-tries-maintain-status-quo  

No Comments »

The Fed can’t raise rates, but must pretend it will

November 2, 2015
posted by

The Cobden Centre
by Thorsten Polleit  

"Since spring 2013, the Fed has been playing with the idea of raising rates, which it had suppressed to basically zero percent in December 2008. So far, however, it has not taken any action. Upon closer inspection, the reason is obvious. With its policy of extremely low interest rates, the Fed is fueling an artificial economic expansion and inflating asset prices." (11/02/15)

http://www.cobdencentre.org/2015/11/the-fed-cant-raise-rates-but-must-pretend-it-will/  

No Comments »

The Fed can’t raise rates, but must pretend it will

October 26, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Thorsten Polleit  

"Waiting for Godot is a play written by the Irish novelist Samuel B. Beckett in the late 1940s in which two characters, Vladimir and Estragon, keep waiting endlessly and in vain for the coming of someone named Godot. The storyline bears some resemblance to the Federal Reserve's talk about raising interest rates." (10/26/15)

https://mises.org/library/fed-can%E2%80%99t-raise-rates-must-pretend-it-will  

No Comments »

More really good news

October 16, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"I recently pointed out that Fed officials are becoming more receptive to the market monetarist proposal for negative interest on reserves. Today there is more progress, on an even more important front. First let me provide a bit of background information. Back in late 2008 and early 2009 I argued that monetary policy was extremely tight, despite low interest rates. Most people scoffed at that claim, they'd say, 'everyone knows monetary policy is highly accommodative.' A new press report (sent to me by Michael Jurka) suggests that even the Fed is coming around to the market monetarist view that low interest rates don't mean easy money ..." (10/15/15)

http://econlog.econlib.org/archives/2015/10/more_really_goo.html  

No Comments »

The pitfalls of the Federal Reserve’s zero interest rate policy

October 16, 2015
posted by

Cato Institute Cato Institute
by James A Dorn  

"The Federal Reserve has kept its target range for the federal funds rate at 0 to 0.25 percent since December 2008. This is often referred to as the Fed's 'zero interest rate policy,' or ZIRP. The purpose of near-zero overnight rates -- and forward guidance to convince markets that those rates will be maintained -- has been to affect the entire rate structure: keeping all rates lower than they would have been in a free capital market." (10/15/15)

http://bit.ly/1Kcu7Yq  

No Comments »

Market monetarism continues to make progress

October 13, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"In early October 2009, the Fed first adopted a positive interest rate on reserves, and then raised it twice in November. Just imagine that instead the Fed had cut IOR to negative 0.75% in their September 16, 2008 meeting, two days after Lehman failed. (At the time the fed funds target was positive 2%.) Perhaps TARP would not have even been necessary. Now the Fed needs to reconsider their views on level targeting, which is even more powerful than negative IOR during a recession. And then NGDP level targeting." (10/12/15)

http://econlog.econlib.org/archives/2015/10/market_monetari_2.html  

No Comments »

Ben Bernanke and the art of central banking

October 12, 2015
posted by

Cato Institute Cato Institute
by George Selgin  

"Like any experienced Fed chairman, Ben Bernanke knows how to choose his words carefully. So the triumphalist headline, 'How the Fed Saved the Economy,' assigned to his Oct. 4 Wall Street Journal column, probably wasn't his doing. Still the question remains: did the Fed really save us? Bernanke suggests that it did. But the evidence he musters leaves plenty of room for doubt." (10/09/15)

http://bit.ly/1hy833y  

No Comments »

Time to end monetary central planning

October 6, 2015
posted by

Richard M. Ebeling Future of Freedom Foundation
by Richard M Ebeling  

"There is no way to describe current Federal Reserve policy other than as monetary confusion and misdirection. In a nutshell, Janet Yellen and the other members of the Fed’s Board of Governors have no idea what to do. Do they raise certain interest rates over which they have some direct influence? Do they keep them at their current rock bottom levels, as they have for the last six years?" (10/06/15)

http://bit.ly/1jMobAa  

No Comments »

Welcome to the banana republic

October 6, 2015
posted by

Liberty Blitzkrieg Liberty Blitzkrieg
by Michael Krieger  

"There's nothing like the comment section when it comes to Federal Reserve propaganda in the editorial pages of the Wall Street Journal. Liberty Blitzkrieg readers will remember the last time the WSJ published a disconnected piece of Central Bank stroking garbage from Fed propagandist John Hilsenrath, and the riotous anger which ensued in the comment section. ... Fast forward a few months, and here we have Ben 'the courage to bail out billionaires' Bernanke writing an almost unreadable piece of propaganda in the WSJ titled 'How the Fed Saved the Economy.'" (10/05/15)

http://bit.ly/1j9suph  

No Comments »

When the Fed ignores the market

October 4, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"Market forecasts are often wrong. But they remain the least bad way we have of predicting the future. In the past, we've paid a heavy price when the Fed ignored market forecasts. In September 2008, the TIPS markets predicted very low inflation while the Fed predicted very high inflation. The Fed refused to ease money policy and we paid a heavy price when it turned out the markets were correct." (10/03/15)

http://econlog.econlib.org/archives/2015/10/when_the_fed_ig.html  

No Comments »

Dammit, Janet

October 1, 2015
posted by

The Cobden Centre
by Tim Price  

"According to Einstein, time is affected by gravity. Clocks far from strong gravitational fields run more quickly; those close by run more slowly. We can only assume, then, that Janet Yellen has the density of a neutron star. Under her leadership of the US Federal Reserve, time seems to have stopped altogether." (10/01/15)

http://www.cobdencentre.org/2015/10/dammit-janet/  

No Comments »

Low interest rates cannot perpetuate a house of cards

September 22, 2015
posted by

Richard M. Ebeling The Daily Bell
by Richard M Ebeling  

"When is the price of some marketable good or service at or near zero? When either the supply of it is so plentiful that virtually any demand, no matter how great, can be satisfied or when no matter how large or small the supply of it may be, people's demand for it is so low that nobody is willing to practically pay anything for it. On Thursday, September 17, 2015, Federal Reserve Chair Janet Yellen announced that, once again, America's central bank was leaving a key interest rate -- the Federal Funds rate at which banks lend money to each other overnight -- at barely above zero." (09/22/15)

http://tinyurl.com/q8gnmvb  

No Comments »

Markets will rule in the long run

September 17, 2015
posted by

James A Dorn Cato Institute
by James A Dorn  

"Slow economic growth reflects slow productivity growth due to structural/institutional problems, not slow money growth. The current low inflation diverts attention from the damaging effects of the Fed’s unconventional monetary policy. Moreover, policymakers continue to confuse low interest rates with easy money and to think that lower rates produce a permanent wealth effect. The truth is the Fed's 'wealth effect' is a pseudo wealth effect: Once interest rates return to normal, asset prices will fall and wealth disappear. Although the Fed can influence interest rates in the short run, markets will rule in the long run." (09/16/15)

http://www.cato.org/publications/commentary/markets-will-rule-long-run  

No Comments »

Jackson Hole: Cherry flavored cyanide, or strawberry

September 8, 2015
posted by

The Cobden Centre
by Keith Weiner  

"In the real gold standard, if you don't like the interest rate or banking risk then you sell a bond or withdraw your gold coin. This forces the interest rate up. The time preference of the people has real teeth. However under the dollar, what can you do? At least a bond pays something. If you sell it, then you get cash which pays nothing. Savers are disenfranchised. No wonder interest has been falling for three decades. The debate of a Fed managed dollar based on unemployment and CPI, vs. a Fed managed dollar based on the gold price is a false alternative." (09/08/15)

http://tinyurl.com/njfu2db  

No Comments »

If the Fed is always wrong how can its policies ever be right?

September 1, 2015
posted by

The Cobden Centre
by Ralph Benko  

"If the Fed is making policy based on consistently wrong predictions how good can its policy consistently be? If its forecasts consistently are wrong -- as now is undeniable -- on what is it basing policy? Guesswork (more pretentiously phrased as 'discretion')?" (08/31/15)

http://tinyurl.com/napz2s7  

1 Comment »

The central bankers’ malodorous war on savers

August 30, 2015
posted by

David Stockman LewRockwell.com
by David Stockman  

"Relative to wage and salary income, the exhaustion of the Greenspan-Bernanke parlor trick is plain as day. Debt soared from 80% of wage and salary incomes in the 1970s, where it had traditionally been associated with healthy household finance, to 220% of wage and salary incomes by the eve of the financial crisis. But since then it has rolled over and has therefore been a depressant to growth, not a stimulant." (08/29/15)

http://tinyurl.com/nppptsm  

No Comments »

Keeping the bubble-boom going

August 25, 2015
posted by

The Cobden Centre
by Thorsten Polleit  

"The US Federal Reserve is playing with the idea of raising interest rates, possibly as early as September this year. After a six-year period of virtually zero interest rates, a ramping up of borrowing costs will certainly have tremendous consequences. It will be like taking away the punch bowl on which all the party fun rests." (08/25/15)

http://www.cobdencentre.org/2015/08/keeping-the-bubble-boom-going/  

No Comments »

Debt collapse: The decline and fall of the United States of America

August 25, 2015
posted by

OpEdNews
by William Edstrom  

"There's going to be a collapse in the United States of America. Again. This collapse around, there's nothing the United States (US) government can do to 'rescue' the US economy because the Federal Reserve Bank's interest rate is 0%. They cannot lower interest rates. The only thing the US government can do is print more money. Printing too much money causes hyper-inflation which in turn causes things worse than hyper-inflation." (08/25/15)

http://tinyurl.com/pzrm8sh  

No Comments »

Trumping the federal debt without playing the default card

August 19, 2015
posted by

CounterPunch CounterPunch
by Ellen Brown  

"The vast majority of the money supply today is created by banks when they make loans, as the Bank of England recently acknowledged. Banks create money by 'monetizing' debt, turning loans into the digital deposits that make up most of the circulating money supply. The government could push the reset button by monetizing its own debt, turning it into what it should have been all along -- debt-free, interest-free dollars." (08/19/15)

http://tinyurl.com/py6gz96  

No Comments »

Our Sponsors