Ah ahahaha, Grace's every-present alter ego. Well this is an honor to be sure.
((Credit markets are notoriously free. They can't be controlled by the FED. Proof: you don't have to play.))
What an unbelievably stupid statement. Let me see, it is NOT POSSIBLE for the Fed to collude with private market participants to artificially distort the price of credit. OK, whatever. Let me guess, you also believe that the neocons genuinely want to bring democracy to Iraq, and that America historically has pursued mostly benevolent foreign policy.
((The cost of money is never depressed and can never be manipulated even by FED except over short periods of time.))
A man of absolutes I see, another "never" and "can never". Interesting, the public and private sectors "can never" collude to artificially distort the price of credit "except over the short term". OK, if you say so.
((Griffin attributes to a credit creation method things that have nothing to do with it. And, by the way, FED wasn't modelled after BOE. There are few similarities between the two.))
Well thanks for your "opinion" on the matter. Well noted. In fact, your "opinions" appear to rest on a very basic set of assumptions regarding the Fed's inability to collude and influence free-market mechanisms. If you assumptions hold, your conclusions hold. I would argue that a different set of beginning assumptions - specifically, that the Fed is masterful at colluding with supposedly free market agents to distort pricing signals and mechanisms - yield a quite different set of conclusions. Different starting premises, different conclusions.
((FED wished they could manipulate money supply to the extent you imply. They've tried all degrees of excess and dearth and all of them failed to achieve their implied policy objectives. One noteworthy attempt was in the late '80 early '90s when FED tried to implement Friedman's program of money supply targeting. It worked exactly as it should, but FED and Friedman expected something else, something that couldn't ever happen, along the lines of stable prosperity. ...))
This sounds very legit and earnest the way you put it. I don't know what the competing monetary "narratives" or "official stories" of Fed monetary policy are for the period of the late 1980s/early 1990s. But irregardless, I don't trust the Fed. I don't trust them to manage the credit system for the broader interests of society, or the global community. I believe them to be primarily interested in manipulating wealth in the interests of the economic and political elites.
So there you have it. Widely differing viewpoints to be sure. I guess the "truth" is for each to judge based on their own analysis & experience.
Regards,
Glenn |
