Jim Grant Accuses Fed of "Lethal" Intervention And Manipulation Of US Economy

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Yesterday Jim
Grant gave an interview to Bloomberg’s Pimm Fox, which was as usual
informative and entertaining, and thus must see. Yet the section
which is most relevant for our post-capitalist society (one is unsure
what defines it best: communism? socialism? fascism? farcism? idiocy?)
is Grant’s discussion of H.
Parker Willis
, one of the founders of the Federal Reserve in
1913, who in a book written two decades later laments the very existence
of the Fed. As Grant says: "Willis was present at the creation
of the Fed, he was one of the draftsmen of the Federal Reserve Act
of 1913. Willis was also the first secretary of the Federal Reserve
Board – he knows this institution. He wrote a book in 1936,
which was a lamentation about the low estate of Central Banking
in America, the Fed had lost its way in 1936. It had opened its
doors in 1914 and by 1936 it had eaten the forbidden fruit, it was
in the business of guiding the economy, of managing the economy,
of manipulating this aggregate and that, and Willis said: "For
Pete’s sake. You can’t know that – the GDP data are not reliable
enough for you to do what you think you are doing." It’s a
wonderful tract against the tendency of the Fed to do what it has
so lethally done to this economy in my opinion, which is to steer
us, in the interest of raising the GDP it presses interest rates
to zero, pouring out immense volumes of econometric studies in support
of this dubious enterprise. Hey Fed: just attend to the dollar,
that’s it, no inflation, just do one thing! You’ve heard of mission
creep, these guys are the mission creeps par excellence."

When even cool,
calm and collected pundits like Jim Grant fall into murderous paroxysm
of blind rage when discussing the Fed, you know it is only a matter
of time before the world’s most destructive organization is eliminated.
And yes, it won’t go without lots of blood.

with permission from ZeroHedge.

4, 2010

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