The Foolish Fed

The three Federal Reserve Mandates.  Yes, there are three.  It is a "tri" mandate, not a "dual" one. "....conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates" Maximize Employment  "34.3%: Share of Americans over age 16 who say they don't want a job, up from about 30% two decades ago." 34% of Americans without a job, don't want one?  How much Fed pumping and Quantitative Easing does it take to change this?  And how much will it take to get the percentage of the people in the work force moving up again off a 35 year low? And how much Fed pumping will it take to get manufacturing back from China and the Pacific Rim?  Answer to all of the above is that monetary policy is a poor tool to address these issues.  Monetary policy did not cause any of these conditions, so why the insistence that it is the cure? Embracing...(Read Full Post)