prudentinvestor

Why We Need a Recession

Thanks for posting this link.

While confessing that I am unqualified in legal and constitutional matters, I must say that it appears that the fed is stepping into social policy and international politics that should be the prerogatives of congress and the executive branch.

After all, the social policy aspect of picking winners and losers within society, as to whose mortgage gets subsidized by whom, and whose mortgage does not, seems like the prerogative of the legislative branch. Similarly, extreme monetization could affect international relations with our creditors, and this issue seems like the prerogative of the executive branch, perhaps the state department.

should be dealt


On Jan 08 05:24 PM SW Richmond wrote:

> Thank you all for your comments.
>
> prudentinvestor,
>
> My belief in the Fed's course is cemented in place by the very existence
> of the Fed. They cannot do nothing, even though doing nothing would
> cause the least harm, simply because doing nothing would be an admission
> of their impotence. Since under "normal" times the Fed provides the
> inflationary funding vehicle for expansionary government and banker
> mischief, such an admission is a virtual impossibility. They MUST
> try to reinflate; no other course is possible. The issue is political
> and not financial.
>
> By the way, if you haven't seen it, this interview with Bill Poole
> is a must-watch.
> www.bloomberg.com/avp/...