Re: Fed nominee Fischer says easing still needed amid unemployment
The above Bloomberg article on Stanley Fischer as the Fed's nominee for its number two person bodes ill for America and the world. Fischer has spent his entire adult life as an apparatchik with the World Bank, the IMF, and as head of the Bank of Israel and vice chairman of America's premier crony capitalist bank, Citigroup. His statements represent the complete capture of America's monetary system by Keynesian money printers, who see more fiat money printing as the solution to every problem. His reference to the unemployment rate is especially repugnant in that it ignores the fact that America's labor participation rate is at historic lows, especially for Americans in their 20's. Millions have simply given up hope of ever finding a real job. It is obvious to any economist of the Austrian school that no Fed nominee will be considered who criticizes the Fed's program, under whatever silly name ("quantitative easing", for example), of monetizing the US government's massive annual deficit. American savings and capital are being plundered, because its government refuses to live within its means and dare not increase taxes or borrow honestly in the bond market.
The only hope of a return to reality lies with Europe or possibly China. The European Central Bank is following in the lead of the Fed, but many of its members are growing increasingly worried, especially Germany. Germany could lead the world to monetary sanity by leaving the Eurozone and reinstating a sounder deutschmark. This would set in motion a cascade of virtuous events that eventually would force the Fed to strengthen the dollar or lose its premier position as the reserve currency of choice. Likewise, China is importing and hoarding gold, which leads many to believe that it sees the coming crash of the dollar and may offer the world a gold-backed yuan. Either action, by Germany or China, would be nothing more than rational self-interest and would eventually be seen as beneficial for all the world.