Lea Cabrerra

Capitalism in Jeopardy?

If you are against central planning (collectivism, socialsim, etc) then consider that the Federal Reserve is the most gross form of central planning known to mankind.

The 12 appointed (not elected) governers manipulate economic activity in their war against the business cycle in an effort to impose their social and economic ideals on the 300 million people that make up the free market place.

Why anyone believes that the wisdom of 12 Federal Reserve governers is superior to the collective concsious of 300 million market participants is sheepish.

These people and thier ability to counterfeit money and loan it to us at rates below what the free markets would otherwise charge has proven dangerous.

Yes, their abilty to bring about credit expansion creates an intial boom and perceived prosperity, but the facade ultimately gives way to the reality of inflation, misallocation of capital, and deflationary bust.

The Federal Reserve's survival is insured by the useful idiots that are Republicans and Democrats as they point the finger at each other during each economic crises. Patisanship spares the Federal Reserve and thus it survives another day to play with our economy.

Indeed, our elected leaders meddle and reak havok on our markets. But the extent by which they can inact their policies is limited only by the willingness of the Federal Reserve to finance it with its printing presses. WIthout the Federal Reserve, FNMA and Freddie Mac never could have become what it did.