Thursday, November 5, 2009

The Fed Acts Only According to Its Nature

I sent the following letter to the Wall Street Journal in response to its editorial that the Fed was determined to hold interest rates close to zero.

From: Patrick Barron
To: Wall Street Journal
Sent: Thursday, November 05, 2009 8:55 AM
Subject: Fed Acts Only According to Its Nature

Re: Money on Autopilot

The Fed was created to be an engine of inflation for the purpose of bailing out financial elites at the expense of the rest of the citizenry. To expect it to pursue a financially sound long term policy that would be neutral in its effects on every citizen, elite or commoner, is a foolish pipedream. Our Founding Fathers understood that man is fallible and will pursue his own interests and those of his fellows; therefore, it drafted a model of constitutionally limited government with enumerated powers. Nowhere in that short list of powers will one find the authority to form a central bank with the ability to issue fiat money in unlimited amounts. The Fed acts only according to its ultimately destructive nature; therefore, it must be abolished.

Patrick Barron
PMG Consulting LLC
West Chester, PA and Coralville, IA

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