15 April 2011

Idiot Monetarists

Usually I can't find a whole lot of fault with the authors over at National Review Online, but this one takes the cake.  

Anyone who is stupid enough to advocate actually making the Federal Reserve's mandate to literally, make nominal inflation, doesn't have a brain or an understanding of the words free and market.  Go read the article (and if you are like me, it'll make you practically go mad).  But once you're done, enjoy yourself and give my unfiltered and raw feed back a read from my comment the other day. 

Pull this lever, turn this knob, and prime that pump! Credit, credit, and more credit! Yes, more liquor in the punch bowl is what we need! After all, the party isn't wild enough with the strippers, Cuban cigars, LSD, and cocaine, we must have more punch!

Monetarists are all the same Keynesian, yet just by another name. Neither understand John Maynard's true economic principles of government should save money in the good years, to be able to inject the savings in a downturn to take up the slack of spending by the private sector in a non-money fueled inflation like the one that Mr. Beckworth advocates for.

The mere fact that Mr. Beckworth would consider making the Fed's mandate to litterally manipulate the already manipulated GDP number, goes beyond anything that is liberty minded, and down and outright imposing of tyrannical control of the money supply. Carte blanche to actually cajole the money supply into a permanent "mark to fantasy" of the entire economy would enslave the entire country into a debt prostitute lifestyle. Strong words, I am aware, but nessecary when combating idiot wonks who think the right people and right policy will fix our problem.

Errrrnt, wrong! Sorry, no policy will work until the actual free market wins out, debt defaults happen, credit write-offs and write-downs occur, and we can actual figure out the non-manipulated price of goods, services, and commodities. Besides, with every expansion in the monetary base by the Federal Reserve, we have ALWAYS seen a dramatic rise in the price of oil, accompanied shortly thereafter by a prolonged recession / stagnation. Meaning, even the Fed can't fight the Austro-Hungarian economic cycle.

Meddlers work in Washington, because they only know how to meddle. Wonks work for meddlers because the wonks have the brains the meddlers wish they could have to provide the logistics to implement their ends. Of course, the means are one in the same, the people.

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