Hey! Randy

The Fed at 50

Posted by heyrandy on July 27, 2012

Fifty Years of Managed Money, Elgin Groseclose, 1965

2013 will be 100 years since Congress passed the Federal Reserve Act.  The Federal Reserve (the Fed) has professionally managed our money ever since. The author give the history of the first fifty years of the Fed. Given what the author says, Congress should have stayed home.

The author’s contention is the Fed has done nothing to help the country. The Fed’s policies have steadily devalued the American dollar. The Fed has been the source of funding for all the bad programs this country has produced. The Fed is evil.

The Fed’s proponents pitched the idea to the American public and its congress as a panacea. It would regulate the money supply so there would be no booms or busts. All would be steady. The Fed failed. The Fed did worse than fail. It caused most of the problems. Instead of a panacea we got a toxic nostrum.

The Fed claims that it is independent of politics. This is a lie. The author shows that the Fed was a political tool since its creation.

There were only a few voices who spoke against the Fed’s creation. Many politicians fell for the sales pitch. Most of the politicians just went along. So did President Wilson. He was clueless about economic matters. Most Presidents are. They just believe what they were told.

The Fed is coming under attach. There have always been Fed critics, but recently there are many more. The Fed is getting a lot of publicity, all bad and all deserved. Fed critics are no longer considered members of the tinfoil-hat set.

This is a good book to read if you are just getting started in Fed studies. It is especially valuable in tracking the course of public opinion about the Fed. The Fed has come a long way since “the Fed what?” was the average American’s knowledge of the Fed. This book is amazing in that it was published. There was very little thought given to the Fed in 1964. That has sure changed. Get this book along with The Creature from Jekyll Island and you will be able to give the Fed a proper birthday party next year.

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