As we gird our loins for the next FOMC rate setting meeting next week, the old ‘will they: won’t they?’ is beginning anew, with everyone long of the market, or short of a job, clamouring for Sir Al and the other Knights-Errant (as in mistaken, of course) to rescue the flagging economy by cutting another quarter point off the Funds rate and boosting the money supply. But, if they gallantly acceded to these demands, would this cut finally do some good? There is no reason to assume so. Suppose we felt our parlour game of Monopoly was proceeding a little … Continue reading Our Enemy, the Fed