Shills for the Fed

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Here’s another proof that the anti-Fed movement is gaining new ground: a long list of prominent economists–many of them recipients of Fed preferment and largesse, of course–who say, in effect, “Don’t question the central bank!” They actually claim that questioning the Fed can lead to inflation, when they all endorse it in their teaching and writing. The Fed was founded to inflate; it exists to inflate. These economists claim inflation — a constant increase in the money supply — is necessary to economic growth, when it is the greatest enemy of prosperity ever invented by the state and its friends, like these economists. It is even more damaging than direct state looting, that is, taxation, since inflation distorts economic calculation. Of course, by strengthening the state and its allies, inflation has benefited men and women like this, but not the producers in society. Ron Paul’s Audit the Fed bill, the progress of which alarms these members of the power elite, is a reflection of a change in the climate of opinion. So is this ad, which the Fed obviously requested through its new lobbyists. And folks, we haven’t seen anything yet, both in establishment demonization of Fed opponents, and in decline in its tacit support among the people. Look forward to this battle. It is one we will win, thanks to the great Austrian economists. Rothbard, thou should’st be living at this hour!

10:52 am on July 16, 2009