Everybody stop
Hey, what's that sound?
Everybody look what's going down
--Buffalo Springfield
Ron Paul reflects on Fed head Ben Bernanke's recent Humphrey Hawkins comments and the consequences of Fed policy. He observes, as we have many times on these pages, that the Fed's policies are lining the pockets a privileged few.
"The Fed thinks that you should lose two percent on the value of your dollar this year," he says. He also notes that if price changes were measured more accurately that the destruction in purchasing power would be even more apparent.
Where does that loss of purchasing power go? Into the pockets of bankers and to the owners of financial assets.
This is the biggest wealth transfer in the history of the world and Bernanke is trying to deceive his way to the finish line (a.k.a. retirement).
You can do as he hopes and look the other way, or you do what you can to stop being robbed.
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2 comments:
No one should expect that any logical argument or any experience could ever shake the almost religious fervor of those who believe in salvation through spending and credit expansion.
~Ludwig von Mises
I worry about the effects on the long-run stability and efficiency of our financial system if the Fed attempts to substitute its judgments for those of the market. Such a regime would only increase the unhealthy tendency of investors to pay more attention to rumors about policymakers' attitudes than to the economic fundamentals that by rights should determine the allocation of capital.
~Ben Bernanke, October 15, 2002
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