Tuesday, November 16, 2010
For Whose Benefit Is Monetary Policy Run?
I find it very interesting that people care about money, want to have more money, but do not understand very much about how the Federal Reserve Bank has and continues to manipulate the value of our money. The article in the Sunday New York Times, How To Make The Dollar Sound Again, is seen by too few people. The Federal Reserve Bank's relationship with commercial banks has become much like the corrupt relationship between the Food & Drug Administration (FDA) and the drug companies. The original purpose of our central bank has been corrupted. I wrote many months ago that the job of the Federal Reserve Bank is not to prop up the economy. Fiscal policy is the responsibility of the Congress and the executive branch, the administration. The central bank should be concerned with protecting the integrity of the dollar because the value of the dollar affect all of us that use our currency. Why should a dollar earned and saved in 1960 be worth less than 1/7th of a dollar today in purchasing power? This is a crime that goes unreported, not understood and is perpetuated every day by the actions of the Federal Reserve Bank. I ask, For whose benefit is monetary policy run?