Republicans and conservative think tanks are apparently convinced that the key to improving the Federal Reserve is to create a "rules-based" monetary policy. But, as is so often the case with economics, things are much more complicated than they seem.
There were many state and local elections in the US this week, but few of them will result in anything that will combat widely held and popular errors about central banking, drug prohibition, and the global environment.
Given the current state of the economy, the Fed appears quite unlikely to raise interest rates any time soon. But what will it do if the economy starts to really go south?
Historically, reserve currencies have arisen without the help of the IMF, but we’re now witnessing a situation in which the IMF may declare the Chinese yuan a “reserve currency” as part of a larger game by global elites to manipulate global exchange rates.
The Fed's Federal Open Market Committee renewed its commitment to easy money this week. The Fed will pretend to be committed to raising rates while doing nothing, and its ongoing war against deflation will continue to make us poorer.
The Fed has a difficult balancing act. To maintain the current easy-money induced boom, it must not raise rates. But at the same time, it must also act as if it might raise rates some day, or savers will abandon the credit markets.
Whether its drug prices, crushing debt, or unemployment, government can always come up with someone else to blame. Fortunately though, in spite of the lackluster economy the Fed and the government seem committed to giving us, there's hope for a much better future.
