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Federal Reserve Skating on Thin Ice?
Federal Reserve Chairman Ben Bernanke's easy money policy may do harm than good. In the long run, we are all dead, according to John Maynard Keynes. Keynes' foresight was such that he apparently forsaw what happens (CHAOS!!!) when the Fed decides to reduce interest rates in the face of increasing inflation. When policy makers lose sight of their mandates and capabilities and react in the moment to events, "...in the long run, we are all dead.") In a rather vainglorious effort to "revive" one segment of the U.S. economy (housing), society and the economy at large are placed at risk of inflation and general economic chaos! The first rule of The Bottom Line's policymaking bureau: First do no harm. The Fed should follow suit by doing what it does best: controlling money supply and short-term interest rates.
