The Fed

Recorded from The Mises Circle in Phoenix, Arizona, April 10th, 2010. Sponsored by James M. Rodney.

Recorded from The Mises Circle in Phoenix, Arizona, April 10th, 2010. Sponsored by James M. Rodney.

Recorded from The Mises Circle in Phoenix, Arizona, April 10th, 2010. Sponsored by James M. Rodney.

Recorded from The Mises Circle in Phoenix, Arizona, April 10th, 2010. Sponsored by James M. Rodney.

So no matter what GDP numbers the Commerce Department spins out, the interest rate Chairman Bernanke controls will stay low "for an extended period."

"Yes, this is the mercantilist world of Paul Krugman. Peaceful private exchange is an act of aggression, and aggression will deliver us from an imaginary 'liquidity trap.' Indeed, war is peace, freedom is slavery, and ignorance is strength."

Printing up money and lowering the value of all dollar-denominated assets while simultaneously benefiting political friends and accomplices is sure

These are the people who said that there was no housing bubble, that there was no danger of financial crisis, and then that a financial crisis would not impact the real economy. These are the same people who said they needed a multitrillion dollar bailout of the financial industry, or we would get severe trouble in the economy.

There is, however, no denying that the banks have tremendous vested interest in influencing the policies of the Fed, nor that the power being so narrowly vested in the president makes him a special target for influence. Still, the power to control the Fed is not in the hands of its "owners" but firmly in the hands of the federal government and the president of the United States.

"This myopic focus on 'price stability' made policymakers blind to other possible pitfalls, such as the surge in credit and the rapid growth in asset prices, and the concomitant misallocation of resources led on by distorted price signals."