Friday, April 3, 2015

A primer on the amazing overreach of our central bank.

Notwithstanding Bernanke’s spurious claim that the Fed has to “set the short-term rate somewhere”, the reserve system designed by Congressman Glass was authorized to do no such thing. It had no target for the Federal funds rate; no remit to engage in open market buying and selling of securities; and, indeed, no authority to own or discount government bonds and bills at all.
"Central Banking Refuted In One Blog—–Thanks Ben!" By David Stockman, Stockman's Corner, 4/3/15.

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