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IPFS News Link • Federal Reserve

Abolish The Fed And Stop Following The Fiscal Model Of The Soviet Union

Bill Fleckenstein warned about inflation in a radio interview with King World News. And he took the opportunity to rail against post-Greenspan fiscal policy. Fleckenstein says the Fed has to admit it caused the credit bubble than "they're never going to fix themselves." "In the end, the Fed as we know it will be abolished and we'll go on to some other standard, where a group of men and women behind closed doors can't repeat the mistakes every single committee that was in the Soviet Union before it died a deserved death." Low interest rates won't only cause inflation and a next bubble, Fleckenstein says, they will cause pain for Main Street. "Anyone who lives on any kind of a fixed budget, whether a pension or government assistance of someone who's retired and planned ahead, they're getting squeezed on both sides: cost of living is ratcheting higher… and they're not being adequately paid for savings."

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Comment by Anonymous
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    This short article wets the pants warning about inflation.  It insinuates that the Fed is some kind of a Soviet Politburo committee that deserves to be abolished because of “mistakes”, real or imagined!  It is a very poor assessment of how the Federal Reserves works. The Fed introduces inflationary policy to pump prime a depressed economy. The Fed also manipulates and stabilizes the economy when the economy is moving towards hyperinflation.

     Warning about inflation? What for when we have to create it to stabilize the economy during recession. What for when we rein it to prevent a “galloping” inflation, not just inflation! That’s why this country needs a Federal Reserves like what we have right now that does this balancing fiscal and monetary acts to stabilize the economy – not abolish it and leave the economy to a pack of barking dogs! 

       Is the Fed a perfect monetary entity?  Of course not, it is not spared of “errors” if you may, and in fact even some corrupt people in it as in any similar organizations, deserve to be in jail – but that is not the center of the main objection here. Instead, what we read here is nonsense … just madness towards the government, towards the Fed in particular. The Fed is free enterprise, which is antipodal to the Soviet centralized economic system. The comparison of the Fed to a Politburo bungling committee is irrelevant if not contradictory [poor understanding of how the Soviets run their monetary system].

       Well, the bottom line is, a Libertarian presidential candidate running under a Democrat or Republican shell and their supporters who want to recreate America without taxation and central bank [the Fed] and therefore as weird if not worse than Obama, will never have even a Chinaman’s chance to put their man that they idolize in cloud nine, in the White house. Mark my word from this day on.


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