Fed Up with Fed’s Myths
The Daily Bell – by Staff Report
The Federal Reserve’s announcement on Nov. 3 that it will buy $600 billion worth of Treasury bonds to help boost the struggling U.S. economy reverberated around the world this past week, with condemnation from critics as varied as Sarah Palin and the president-elect of Brazil. Yet much of what the Fed and its chairman, Ben Bernanke (left), have done is shrouded in confusion and misperceptions. – Washington Post
Dominant Social Theme: Let’s be reasonable about this. Ben Bernanke is trying very hard and he’s getting bad rap.
Free-Market Analysis: Below we analyze an article (see excerpt above) that appeared in the Washington Post recently entitled “Five Myths About the Federal Reserve.” Let us mention some good things, first. The article is well written, even elegant, and not overly-complex. It is composed by a smart person and has an air of sincerity that presumably is authentic. On the other hand, the article is just plain wrong in our view, and seems a bit defensive as well. We would argue, in fact, that its appearance itself is a kind of metaphor, an acknowledgement by the elite of just how much trouble the central banking meme is in. That’s the significance of the article, in fact. It’s a rebuttal of sorts to an assume skepticism about central banking that did not exist until relatively recently.