The Monetary Policy of Unintended Consequences

David Stockman has a lengthy piece at Zero Hedge, and I recommend you read the whole thing. And pay particular attention to this:

In short, Fed policies are mangling the Main Street economy by disabling the pricing mechanism in all financial markets, diverting capital to unproductive speculation and rent-seeking and leaving genuine entrepreneurs and businessmen adrift in a fog of financial disorder. Needless to say, the result is tepid growth of incomes and jobs—-a lamentable condition that the Fed cannot fix with “moar” monetary stimulus because decades of the latter are what has caused the problem.

More importantly, the impossibility of fixing a structural problem with Keynesian cyclical medicine means that the monetary politburo will descend into an ever more incoherent babble as the “incoming data” fail to match its clueless forecasts.

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It’s become undeniable that a government that cannot be trust to spend money wisely, certainly cannot be trusted to create money wisely.

It’s time to end the Fed.

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