Pro Permanent
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More Great Information on Pro Permanent:
Mike Lee Wants to End the ‘Monetary Morphine’ at the Fed (redstate)
What’s worse than Congress picking winners and losers and distorting the free-
market with bailouts, stimulus, and tendentious interventions on behalf of
specific industries? Unelected members of the Federal Reserve doing the same
through monetary policy.
It is amazing to watch how many Republicans will speak with such conviction
against Keynesian fiscal stimulus policies, yet they will fervently promote
monetary stimulus policies by the unaccountable Federal Reserve. Their
support for near-zero interest rates, quantitative easing, bailouts, and
intervention in the housing sector has muddled our message against Obama’s
anti-free-market policies. Moreover, in this time of record commodity prices,
pro-(monetary) stimulus Republicans preclude us from showing how government
intervention on behalf of special interests distorts the markets, depletes
savings, and devalues the currency – a winning political argument if there
ever was one.
Richard Fisher, president of the Dallas Fed and frequent dissenter on the
Federal Open Market Committee (FOMC), recently said that he is “personally
perplexed by the continued preoccupation, bordering upon fetish, that Wall
Street exhibits regarding the potential for further monetary accommodation—the
so-called QE3, or third round of quantitative easing.” He explained that Wall
Street has become hooked on “monetary morphine” based on the previous
expectation that the ...
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