When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Tuesday, October 8, 2013

Bernanke's Failures, Unemployment, The Value of Money (US)

Or is the Fed destroying the value of the US dollar in trying to "boost employment"?

Money — the crisis Washington’s ignoring | New York Post: "And the average sale price of a new home rose 4.2 percent, but the value fell a staggering 54 percent to 257 ounces of gold. Absent a dramatic turn of events, Bernanke will leave his successor with a dollar that is less valuable by far than any dollar ever left by any Fed chairman. In percentage terms, the plunge in the dollar’s value on Bernanke’s watch is the second most dramatic in history. The cover for him to do this is a 1978 law called Humphrey-Hawkins, which gives the Fed the job not only of watching prices but of boosting employment. How has that worked out? The Fed has been ballooning its balance sheet by billions — “not literally” printing money, Bernanke quipped before Congress; it’s now done electronically — and the unemployment rate is still stuck above 7 percent."

As usual, the culprit is legislation passed by Congress and signed by the President -- the dual mandate required by legislation known as Humphrey-Hawkins. At some point we really need a moratorium on any new legislation. Congress and the Executive Branch (that's you Obama) should be repealing legislation, amending legislation by rewriting it to be more streamlined, simple, and easy to execute and follow, and stop excluding government (including Congress) from ANY legislation!


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects