Central planning failed in the old eastern Bloc
Grant on what the Federal Reserve needs to do now to get new best practices:On whether the U.S. needs a more rules-based central bank to provide discipline and protection:“It needs to get out of the central planning business. The Fed was organized in1914 and opened its doors to conduct a more or less traditional central banking business, meaning it would lend against good collateral to solvent institutions in times of cyclical or seasonal need. It would defend and protect the gold dollar. That was all that its original remit contained. fast forward many decades, and we see the Fed in the business of steering, guiding, manipulating the economy, financial markets, the yield curve. It manipulates and pegs interest rates. It is all over the joint doing what failed in the old eastern bloc.”
http://www.zerohedge.com/news/jim-grant-refuses-get-lost-hall-mirrors-market“What we need is a central bank that has the humility not to do what it cannot do. And the Fed cannot do what others have failed to do, namely to plan an economy from a central desk in the capital city.”
PS Poor journalist! So sad!
Share story
0 comentários: