Monday, May 4, 2009

Kill the Fed?

"But the Big Kahuna escaped. The Federal Reserve. ... Already in its sixth week on the New York Times best-seller list, [Thomas Woods Meltdown] traces the Fed's role in every financial crisis since this creature was spawned on Jeykl Island in 1913. ... Because the much-maligned Warren Harding refused to intervene. He let businesses and banks fail and prices fall. Hence, the fever quickly broke, and we were off into 'the Roaring Twenties.' ... Herbert Hoover, contrary to the myth that he was a small-government conservative, renounced laissez-faire, raised taxes, launched public works projects, extended emergency loans to failing businesses and lent money to the states for relief purposes. ... Indeed, in 1932, FDR lacerated Hoover for having presided over the 'greatest spending administration in peacetime in all of history.' His running mate, John Nance Garner, accused Hoover of 'leading the country down the path to socialism.' And 'Cactus Jack' was right. FDR mistook the consequences of the Depression--falling prices--for the cause of the depression. But prices were simply returning to where they belonged in a free market, the first step in any cure. ... But how can an economy be truly growing 13 percent a year, as the economists claim, when there is rationing, shortages everywhere, declining product quality, an inability to buy homes and cars, and a longer work week? ... It was 1946, a year economists predicted would result in a postwar depression because government spending fell by two-thirds, that proved the biggest boom year in all of American history. ... Of Nicholas Biddle's Bank of the [US], the great Andrew Jackson was eloquent. 'It has tried to kill me,' he said. 'But I will kill it.' And he did", Pat Buchanan, 3 April 2009 at http://www.vdare.com/buchanan/090402_fed.htm.

Yes Pat, let's kill this monster.

2 comments:

Anonymous said...

Well IA... the monster seems to be flying to pieces...

Ol' Friedman down at the New York Fed is either an idiot or his stock purchases were a perfect cover for a resignation ... anyone who has been head of an investment bank knows the basics on avoiding conflicts of interest....

Oh yes... slay this corrupt beast...

darkcloud said...

SC -

Saw a post (and lost it in my mental maze) about how all of the Presidents since Lincoln (except maybe Kennedy) were all in the pocket of "The Club". I'm all for 86-ing the FED. But I don't think it will happen, as Obama seems to be in lockstep with Bush.

And Kennedy did challenge the FED with his own version of currency issued by the US Treasury. Neither lasted very long though, right?

(FYI - I replied to your comment at my blog. Thanks again and for the book rec.)