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"I Print Therefore I Am" - The Fed Justifies Its Existence, Fails

In an brief two paragraph blurb on its brand spanking new blog Liberty Street Economic, a post by "Blog Author" (one wonders if the New York Fed is as cheap in providing its bloggers with a blogging facilities as it is when "giving" the POMO interns Bloomberg terminals), the FRBNY provides a trite if enjoyable summary of the thinking that prompted the creation of the Fed, courtesy of one F.A. Vanderlip, president of Citibank, which apparently was as insolvent back in 1907 as it is now. The premise: the Fed is the cause of monetary stability and the prevention of "disorderly retreats or advances." That's actually supremely ironic because as John Lohman points out the main trade off, namely the 2,313% increase in CPI, ended up shafting the market to an even bigger crash in 2008 than the panic of 1907. But at least in the interim 101 years the Fed's overlords from Wall Street, managed to steal over 98% of the wealth of Americans in the form of shadow currency devaluation better known as inflation. So who cares about facts when that 5th private Polynesian island for Jamie Dimon has been fully paid for and all three underground cellars are stocked with gold...

From the Fed's blog:


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Point taken.

Point taken.

reedr3v's picture