The Federal Reserve: Interest Rate Manipulator, Bubble Blower, Recovery Impeder, Just Doin' Its Job!

James Dorn of the Cato Institute has a good summation of everything the American economy has been getting from its central bank, the Federal Reserve, lately. 

It has, as Dorn explains, succeeded in facilitating booming federal debt; likely blowing a bond bubble in its feckelss attempt to facilitate growth through eternally small interest rates; continuing to make saving a bum deal for most of us; encouraging banks to just hoard money rather than lend it through paying interest on reserves; and in general screwing with the national and world economy with its hubristic attempt to manage us to smooth growth and high employment.

Dorn's recommendation:

Getting rid of the Fed's dual mandate, eliminating interest on excess reserves, moving away from interest-rate targeting and toward directly controlling the monetary base, and focusing on long-run price stability would be a start. Getting rid of monopolistic central banks and moving toward a rules-based system of competitive "free banking" would offer an alternative that is consistent with a liberal economic order.

Tim Cavanaugh has written many biting and interesting bits about the Fed for us here at Reason.

My 2009 Reason feature on the movement to curb, audit, or end the Federal Reserve.

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  • ||

    encouraging banks to just horde money

    Are these Mongolian banks?

  • ||

    You can have a horde, and you can have a hoard, and you can hoard a hoard, but you can't horde a hoard.

  • ||

    What's this about whores?

    (perks up)

  • ||

    You keep your hordes away from my whore hoard.

  • Almanian's Evil Twin||

    Warty and Epi whored up H ampersand R and bored me out of my gourd. Thanks, tords.

  • EDG reppin' LBC||

    Good Lord.

  • Fist of Etiquette||

    Very untoward.

  • ||

    And because of the terrible puns, forth my tears poured.

  • Hyperion||

    You can hoard whores, who says that you can't? Herding hoards of whores, now there is one of those things you have to try to say fast 5 times in a row.

  • VG Zaytsev||

    You can have a horde of hoards.

    And we do.

  • Pagan Priestess||

    Damn Mogorians knocked down my shitty wall!

  • Pagan Priestess||

    argh squirrels ate the "n" that's supposed to be in the above

  • EDG reppin' LBC||

    Shnitty wall?

  • Brandybuck||

    Mogornians?

  • ||

    Godamnit! How come everytime us Chinee put up a shentral bank, stupid Mongrolians come and knock it down?!?

  • Hyperion||

    That's Mongrowrians. And it's just because the Mongrowrians are badass and rike to knock shit down.

  • ||

    Are these Mongolian banks?

    It was a Golden Horde

  • Mr Whipple||

    Are these Mongolian banks?

    No, Juns.

  • Almanian's Evil Twin||

    "Bubble Blower"....huh huh....huh huh....huh huh...huh huh...

  • Fist of Etiquette||

    The Federal Reserve: Joker, Smoker, Midnight Toker, Gettin' Its Lovin' on the Run.

  • Hyperion||

    This thread needs hijacked on the pronto, before it dies an ugly death.

    Take a looksie here:

    Shooting in DC

    3 things come to mind here.

    1. This guy was obviously not a right wing extremist.

    2. He was likely a liberal since he apparently is not very good with a gun.

    3. WTF is up with the Chick-Fil-A bag?

  • Hyperion||

    Uh, never mind, there was already a post about that here, I missed it.

  • Sanjuro Tsubaki||

    Gee, that helps.

  • Old Mexican||

    Dorn's recommendation:

    Getting rid of the Fed's dual mandate, eliminating interest on excess reserves, moving away from interest-rate targeting and toward directly controlling the monetary base, and focusing on long-run price stability would be a start. Getting rid of monopolistic central banks and moving toward a rules-based system of competitive "free banking" would offer an alternative that is consistent with a liberal economic order.

    I prefer the Harrison Ford solution:

    "Ah, why don't I just shoot it?"

  • ||

    with its hubristic attempt to manage us to smooth growth and high employment.

    with its failed attempts to manage us to smooth growth and high employment.

    fixed for you.

  • Palin's Buttplug||

    Ridiculous.

    Low interest rates are bad for the economy?

    Reminds me of Woody Allen in Annie Hall. "We hardly ever have sex! Only three times a week!"

    Annie: We constantly have sex! Three times a week!

  • Mr Whipple||

    Low interest rates are bad for the economy?

    Artificially manipulated low interest rates, yes.

  • Palin's Buttplug||

    It is not artificial manipulation - it is real manipulation.

  • ||

    Sure is.

    Manipulated interest rates become artificial interest rates.

    Artificial interest rates are bad. If you don't know why shrike then I suggest you go back and read Hayek.

    Hint: it is the same reason why price controls are bad...but instead of price controls on a specific product it is price controls on the currency that everyone uses.

  • Mr Whipple||

    My bad, I meant artificially "generated".

    HAHAHAHA

  • Broseph of Invention||

    Serious question, Sarah's Anal Probe: why do you like Annie Hall? I want to understand. The dialogue feels so artificial and forced. It's the kind of dialogue that would work fine in theater, but falls apart as a film. I've tried watching it twice, and could only make it through half of it. Is it a Jewish thing, NTTAWWT? Is it a first of kind, which has been done better subsequently but was edgy when it came out?

  • Mr Whipple||

    The banks may as well hoard cash. China is hoarding gold.

    http://www.zerohedge.com/news/.....d-reserves

    Which side do you think will come out on top?

  • Palin's Buttplug||

    We will. The Chinks are buying at the top.

  • ||

    Racist and homophobic.

    You are a class act Shrike.

  • R C Dean||

    We have

    (1) No foreseeable significant increase in the supply of gold,

    (2) A real increase in the physical offtake of gold (not to be confused with the short-term gyrations of the manipulated paper market), and

    (3) most importantly, the Americans the Euros with a good start on the process of monetizing trillions of dollars of debt, and no real alternative but to continue.

    And gold has set a long-term top?

    I've about given up on trading "fundamentals" for stocks and the like, but gold is one market where I think the long-term fundamentals are pretty clear, and they don't point down.

  • VG Zaytsev||

    Which side do you think will come out on top?

    We will, cause we can print it faster than they can buy gold with it.

  • TangaBooo||

    Sometimes you jsut have to roll with it dude.

    www.Anon-at.tk

  • Te Amo||

    Last.

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