Sunday, September 23, 2012

2012 Nashville End the Fed Rally.

There was an End the Fed rally in Nashville today.  I was not there, but from the video it looks like about 16 people took part. I know some of these people from Liberty on the Rocks and other political activity. There is Daniel Lewis, who is a candidate for State House District 52, and Scotty, and several others who I recognize but don't know their name.  

I am not in the Libertarian camp but I am fellow traveler and sympathizer on occasion. Regarding ending the fed, I am not quite there.  I think a nation needs to be able to have monetary policy as well as fiscal policy. Anyway, unless one bans fractional-reserve banking one can still have inflation no matter the nature of the currency. Fractional-reserve banking is a natural occurrence that would exist in the absence of government. Most growth in the money supply is due to fractional reserve banking and a result of private sector decision making; not government action. Would Libertarians want to ban this free market practice?  

Whether or not we need the Fed or something like it is an issue I am not ready to take a stand on. I am just not persuaded by the arguments. Having said that however, when Bernanke announced quantitative easing of $40 billion in mortgage-backed securities each month with no end in sight, it moved me more in the direction of the wisdom of the libertarian argument. I fear that at any time we may enter a period of rapid inflation that will make my life savings vanish. I do not see how the government can create out of nothing $40 billion a month in new money and not lead to catastrophic inflation. I am slowly being radicalized by the actions of the Obama administration and the Obama Fed. 

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