A. Bennett: Government manipulation

In recent years, the Federal Reserve has engaged in a policy of quantitative easing. In large part because of that policy, the stock market is at an all-time high. But do we have a free market anymore?

In the old world, a log was cut into boards. Groups of buyers would then bid on those boards until a price was established. It was a messy, emotional process.

Quantitative easing has done away with that problem. Why not skip that messy process altogether with the goal of maintaining the status quo with a virtual market?

Virtual boards and virtual houses could be used to go along with the virtual economy. The problem arises when a homeowner goes to sleep in a virtual bed in his virtual home, built of virtual boards on a winter evening that dips to 20 below zero. In the morning he would not be virtually dead, he would be really dead.

Government manipulation of what should be a free market will have dire consequences. The Federal Reserve has way too much power.

Stimulus should be voted on by Congress in an open forum so that voters can see who stands where.

Freedom should have no virtual component.

Andy Bennett, Buckfield

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Comments

Jonathan Albrecht's picture

Well when you live in a virtual, delusional world, you come to

delusional conclusions.
Free Markets are a virtual delusion. Never existed, never will. Markets have been and always will be managed by society through government to attain non-economic as well as economic goals. Unfettered markets always fail, economically and socially. As the impact of regulation goes down, Markets become more dysfunctional. So why should "Government manipulation of what should be a free market have dire consequences". Where's the evidence of this. What are the assumptions that markets should be "free". Adam Smith proposed in the Wealth of Nations that markets should be more free than existed in a mercantile system where all markets were monopolies controlled by a Monarch's edicts. That hasn't been the situation for a few hundred years. The economic situation is not comparable. You can not simply extrapolate from 1776 to now. What dire consequences? 50 years of progressive economic growth, social stability, and wealth creation.
The Fed does have too much power, but that's not the problem. The Fed is of the bankers, by bankers, for bankers and everyone else is just a pawn in the game. The Fed distorts the economy for the benefit of the bankers. The Fed is a banking monopoly; a conspiracy to steal the wealth of a nation. It was intended as an improvement over the despotic rule of J. P. Morgan before the First World War. It has failed. We need democratic control of the Financial System.

Jason Theriault's picture

Come on

While I agree the fed has too much power, when you get lost in your metaphor, you're not really helping.

I think a bigger problem with the fed is the trillions they have loaned out to banks everywhere. They have been running their own stimulus program to the tune of 7 trillion.

Thats with a T.

The banks during the financial crisis, borrowed 7.7 trillion to hid how really bad they had screwed the pooch from the Fed, with only a few Fed a Treasury officials knowing about it.

Thats HALF of the US GDP.

But it didn't happen under a certain Muslim Kenyan president, so it gets ignored.

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