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purplechoe
06-09-2009, 11:45 PM
http://www.lewrockwell.com/north/north719.html

"A Regional Central Banker Blows the Whistle

by Gary North

"In the long run, we are all dead but our children will be left to pick up the tab." ~ Thomas Hoenig

Thomas Hoenig is the president of the Federal Reserve Bank of Kansas City. In a recent speech, he laid out a scenario for what the Federal Reserve ought to do and what the U.S. government ought to do, and what will happen if they refuse. You can read it here.

They will refuse. He did not say this, but it is clear to me that they will refuse, at least for the near term.

I hope they won't refuse.

Hoenig surveyed what he called "challenges." He said that we – a crucial word in the speech – must "begin now to address them genuinely and systematically or we risk repeating past mistakes and creating an environment that leads to our next set of crises.

Who are "we"? How will "we" accomplish this?..."

Imperial
06-09-2009, 11:49 PM
I think there is a guy who was with the Dallas Fed too who has been pretty fair-minded too.

purplechoe
06-09-2009, 11:57 PM
YouTube - Free* Government Money With Matthew Lesko! (http://www.youtube.com/watch?v=gYTjiIm4h_Q)

emazur
06-10-2009, 12:58 AM
I think there is a guy who was with the Dallas Fed too who has been pretty fair-minded too.

You're thinking Gerald O'Driscoll from Cato, and judging by these 2 quotes I'd say he is more than fair minded:

http://www.washingtontimes.com/news/2008/nov/26/the-fed-solution-or-problem/
"The central bank is like an arsonist watching a fire he set, expressing amazement at how such an event could have happened. The Fed created a moral hazard by first, implicitly, then explicitly promising to bail investors out of risky commitments.
-Gerald O'Driscoll, a former senior Fed official

"To better understand moral hazard, consider the case of a gambler going to a casino. If he bears the losses, his bets will be constrained by that risk. If someone were to guarantee him against loss, but allow him to keep the profits, the gambler would have an incentive to make the riskiest possible bets. He gains all the profits but bears none of the losses. One might designate such a system as “casino capitalism.” Current Fed policy has encouraged casino capitalism in the housing market.
-- Gerald P. O'Driscoll Jr.

purplechoe
06-10-2009, 04:15 PM
bump

Carole
06-10-2009, 06:49 PM
I was shocked to even hear this discussion was taking place on the business (cnbc) channel.

They are still Keynesian however. :(

Jim Grant, editor of Grant's Interest Rate Observer, criticizes the performance of the Federal Reserve.
http://www.cnbc.com/id/31204170

Fed Would Be Shut Down If It Were Audited
http://www.infowars.com/fed-would-be-shut-down-if-it-were-audited/

:D