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To: groanup

Was the charge to maintain orderly markets in their original charter? The Fed inflates currency to help monetize the Federal government’s debts. The inflation occurs unevenly throughout the economy and creates “wealth effect” illusions that lead to systemic errors or mis-allocations in sustainable demand for x or y (bubbles). The bursting of the bubbles is necessary to correct the economy. When they interfere to “create order” they just delay the required corrections.


11 posted on 09/22/2007 7:51:48 PM PDT by kcar (HillCare 2.0: Freedom's deathbed)
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To: kcar
When they interfere to “create order” they just delay the required corrections.

Maybe so but we still have corrections. Why not cut them off before they do ANY damage?

12 posted on 09/22/2007 8:20:47 PM PDT by groanup ("I'm not the one on the defensive here." xcamel)
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