The Fed simply operates the way politicians want it to operate. If you destroy it the root cause of the problem will still be there.
“The Fed simply operates the way politicians want it to operate. If you destroy it the root cause of the problem will still be there.”
I agree 100%. Everyone here was pooping on the Fed for QE I and QE II and would continue to do so all the way through QE XXVIII. The Fed’s “Quantitative Easing” was just a fancy way of saying “papering over the deficit.” If you look at the amount of deficit spending less foreign purchases of Treasury Notes, and compare the remainder to the amount of the QE initiatives, there is a rough parity.
My point is that the Fed really has no choice. It’s the “lender” of last resort to the U.S. Government. As long as the Feds keep running huge deficits, the Fed will have to cover them.