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I do not agree with everything this guy is saying here, but he is exactly right about the Federal Reserve.

It is only the banks and especially the big Wall Street banks that are helped by these low interest rates and quantitative easing.  For the average guy the "Federal Reserve might as well just take a hammer and hit them in the head."

And why does Obama have the same guy in charge of the Federal Reserve that George Bush put there?  How does that make any sense at all?

http://rt.com/...

Bankers on Wall Street are asking the Federal Reserve for another round of quantitative easing as America attempts to rebuild its economy, but will the country really reclaim itself with QE3?
According to Lew Rockwell, chairman at the Ludwig Von Mises Institute, those off of Wall Street will be hit hard by a third round of quantitative easing while big banks and corporations will come out on top.

“The average Joe, the average Janet,” said Rockwell, “is being harmed to the benefit of the power elite.”

Rockwell told RT that contrary to what the media might be reporting, the country is still in a recession, and while the government might say they are keeping interest rates low to help everyman, it is only the big names in banking that are being rewarded this way.
“We’re already starting to see prices increase,” said Rockwell, who warns that more quantitative easing would not lower prices as many advertise. Rather, he says, it has a “horrendous effect on the economy.”

Speaking to RT, Rockwell condemned Federal Reserve Chairman Ben Bernanke as a power-happy Fed head that is behaving like a “mad printer” with the first two rounds of QE.

“This is a criminal act that they are contemplating” another round, said Rockwell, who adds that the only ones that would see a positive results are on Wall Street and Pennsylvania Avenue. The average American, rather, will suffer a “deliberate knock on the head.” Rockwell even goes as far as to equate it as top brass putting “the boot on the throat of the average American.”
“Part of the problem we have is too much debt,” said Rockwell. “There is too much debt in this society; too much government debt; too much private debt . . . we need less lending. We need fewer banks; fewer Wall Street firms.”

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Comment Preferences

  •  Tip Jar (1+ / 1-)
    Recommended by:
    Aeolos
    Hidden by:
    Rich in PA
  •  Hyperinflation destroys banksters' claims on debt (3+ / 0-)
    Recommended by:
    k9disc, Zutroy, neroden

    As long as the banksters control the Federal Reserve, the banksters won't intentionally  hyperinflate the money supply.  

    The darkness drops again but now I know That twenty centuries of stony sleep Were vexed to nightmare by a rocking cradle, And what rough beast, its hour come round at last, Slouches towards Bethlehem to be born? William Butler Yeats

    by deepsouthdoug on Fri Sep 02, 2011 at 10:03:08 PM PDT

  •  Anything written on Russia Today is wrong by (2+ / 0-)

    definition. Moreover, do you actually know who is Ludwig von Mises?

  •  I was going to answer your questions for you, in (4+ / 0-)
    Recommended by:
    Bob Duck, skohayes, Karl Rover, HiBob

    an effort to help you understand US law and tradition.  But then I realized who you were channeling as your muse in this particular instance and came to the understanding that none of my observations about reality and Federal law mattered.  What gave it away was this part of your Lew Rockwell link:

    Part of the problem we have is too much debt,” said Rockwell. “There is too much debt in this society; too much government debt; too much private debt . . . we need less lending. We need fewer banks; fewer Wall Street firms.”

    The part that I text-attributed is not really the sort of comment I'm used to seeing (in an approving sense) around here, so I thought it would be helpful to document things for those who might have a quest for knowledge about Lew:
    Lew Rockwell is an American libertarian political commentator, activist, proponent of the Austrian School of economics, and chairman of the Ludwig von Mises Institute.

    He is also a long-time Ron Paul acolyte...

    Suggestion:  When you step up to the plate to criticize the current Democratic administration, don't come with a bat labeled "Libertarian"....

    "In a nation ruled by swine, all pigs are upward mobile..." - Dr. Hunter S. Thompson

    by Jack K on Fri Sep 02, 2011 at 10:26:28 PM PDT

    •  I am not an idealogue (0+ / 0-)

      And these guys were telling everybody that would listen not to buy a house and to buy gold and silver before 2008 and the housing crash.

      And how does shipping all this wealth over to Wall Street help the average Joe?

      •  I didn't say you were an idealogue... (3+ / 0-)
        Recommended by:
        A Voice, skohayes, skrekk

        ...I said that you shouldn't use a Libertarian ideologue as your muse.  To put it more plainly, it doesn't sell very well to advocate a voice that is shouting a Tea Party meme (the debt is too high) when so many folks from the center to the left (most of whom - unlike me - actually know what they are talking about ) are saying that we need to ignore debt and increase government spending to help sustain and improve employment.  Lew Rockwell isn't in that camp; he's a Libertarian.  That's fine; it's a free country and anybody can say whatever comes to mind.  But his views aren't progressive in any case and stand in stark opposition to both commonly-understood ecomomic concepts and the whole point of this blog...

        Anytime anybody says "We have too much debt and that's the problem", I grab my wallet and flee to the exits, because I know there is a Republican on my heels...

        "In a nation ruled by swine, all pigs are upward mobile..." - Dr. Hunter S. Thompson

        by Jack K on Fri Sep 02, 2011 at 10:57:03 PM PDT

        [ Parent ]

        •  It is pretty hard to have any viable theory (1+ / 0-)
          Recommended by:
          Sparhawk

          of the housing crash without recognizing that people had too much debt and not enough house.

        •  I believe the thread is about QE. (0+ / 0-)

          Not debt.
          QE in theory doesn't create debt.
          It just enables it's creation by monetizing it.

          What's the "real" interest rate currently?
          It's in negative territory.

          DATE         5 YR          7 YR      10 YR      20 Y      30 YR
          09/01/11    -0.82      -0.44     0.07         0.72         1.07
          09/02/11    -0.84      -0.47     0.00         0.61        0.94

          treasury.gov

          That's the best indicator right now of the cost of doing business for the government especially. It's a bonanza to Washington.

          It also is the pinch point for "savers" and the investment class screaming about returns on their parked assets.  They want to see a healthy bump in interest rates circa 1983. They can dismantle what's left of the Great Society AND make buku on their accumulated investments.

          It's insane that we have the national debt crisis talk.  But still it's insane to ask for more QE when everyone knows we are drowning in liquidity currently - WITHOUT inflation and maybe even the specter of DEFLATION once again roaming the house.
          We need "a little inflation, just a little inflation" (sing it boys).

          NO CE/CW. NO UNION BUSTING

          by Aeolos on Sat Sep 03, 2011 at 09:27:51 AM PDT

          [ Parent ]

      •  No you're not an idealogue (0+ / 0-)

        you just need to learn more about QE.  Try this blog Bill Mitchell

    •  And Further the (0+ / 0-)

      Federal Reserve's 'approval' rating lags even the IRS'

      and if these guys are right about the Federal Reserve which they probably are, the public is only going to get more disappointed with present policy.

      •  Sorry, sport: First things first... (1+ / 0-)
        Recommended by:
        skohayes

        ...The linked article is from over two years ago.

        ...while the bailouts were a tough pill to swallow, they were probably vitally necessary while at the same time being a product of (and demonstration of) the intellect-free beauty of Republican political/economic thought.

        ...whether "these guys" are right is a question that will be settled down the road, but neither they or you can say at this moment whether they are or will be right...and a good part of "they" don't have much of a winning track record to work from...

        "In a nation ruled by swine, all pigs are upward mobile..." - Dr. Hunter S. Thompson

        by Jack K on Fri Sep 02, 2011 at 11:24:11 PM PDT

        [ Parent ]

      •  What does an "approval rating" (2+ / 0-)
        Recommended by:
        sewaneepat, Karl Rover

        of the Federal Reserve even mean? I would venture to guess that well over 70% of the people in this country don't have even a basic understanding of what the fed does, so this two year old poll is completely meaningless.
        Your diary is similarly misguided, we are seeing food prices rise because of more agricultural exports, lower yields of crops this year because of weather, hence higher feed prices. Oil prices are bouncing all over the place because of speculators, not because of supply and demand.
        Two sectors that have rising prices does not signal the beginning of overinflation.
        See Krugman:

        here are a couple of questions.

        First, do you see any sign that workers are about to (or are even able to) demand higher wages to compensate for the higher prices of gas and food?

        Second, do you any sign that employers are getting ready to make more generous wage offers?

        Third, have you heard anything about companies feeling that they have room to raise prices by substantially more than the rise in their raw material costs?

        The answer to all three questions is clearly no. So what we have is a rise in raw material prices, which will largely get passed on the consumers, but no hint that this is spreading into a wider rise in prices; and with labor costs flat, that means we get a one-time jump in consumer prices, but no persistent rise in inflation.


        http://krugman.blogs.nytimes.com/...

        You will never know what it’s like to work on a farm until your hands are raw, just so people can have fresh marijuana. Jack Handey

        by skohayes on Sat Sep 03, 2011 at 03:47:21 AM PDT

        [ Parent ]

    •  You are exactly right (1+ / 0-)
      Recommended by:
      skrekk

      and whatever Lew says I would respectfully move as fast as I could the other way!

  •  wasn't lew rockwell behind racist ron paul letters (4+ / 0-)
    Recommended by:
    Eric Stratton, Karl Rover, HiBob, skrekk

    Or at least the one who got the blame for it when Ron Paul denied having anything to do with their racism?

    Regardless, you can guarantee that Rockwell's policy prescriptions for addressing whatever inflation risk may exist right now are 100 percent wrong.

    You see, Rockwell and the other Mises freaks are Confederate worshippers who would have us be another civilization gone with the wind implementing their policies of too low taxes, no public investment in infrastructure or public education, no labor protections or consideration for national manufacturing in trade deals all to benefit wealthy landowners and bankster speculators and to the detriment of everyone else.

    If you really believe this stuff Rockwell is selling you belong at dailypaul, not dailykos.

    •  Yes, he's a total and complete nutjob+ (5+ / 0-)

      Moreover, hyperinflation is not the danger. Deflation is the danger. If we could produce inflation, it would be a good thing.

      Krugman talks about this ALL of the time.

      Thousands of years ago the question was asked: 'Am I my brother's keeper?' That question has never yet been answered in a way that is satisfactory to civilized society. ~ Eugene V. Debbs

      by PlutocracyFiles on Fri Sep 02, 2011 at 11:48:52 PM PDT

      [ Parent ]

    •  One good thing about Lew Rockwell's site is that (0+ / 0-)

      he's got a good archive of all the nutty things Ron Paul has said or proposed.    When people doubt that RP is a racist or homophobe, it's very easy to find proof that he is.

  •  You might want to read Krugman on inflation+ (5+ / 0-)

    First off, the danger right now is deflation, not inflation. Inflation, if we could produce it, would be a good thing because it would make the debt burden less onerous.

    Just so you know, Lew Rockwell is an austrian economist, gold-standard nutjob.

    Thousands of years ago the question was asked: 'Am I my brother's keeper?' That question has never yet been answered in a way that is satisfactory to civilized society. ~ Eugene V. Debbs

    by PlutocracyFiles on Fri Sep 02, 2011 at 11:47:27 PM PDT

  •  Rockwell's an idiot on economics, a moron (1+ / 0-)
    Recommended by:
    skrekk

    And been proven consistently wrong year after year after year.

    The one thing he has right is that the policies are only helping the banks -- but he doesn't even understand WHY they're only helping the banks.

    They're only helping the banks because all the lending is directly to the banks, and the banks aren't passing it on.  If the government was lending directly to ordinary people it would actually help.

    Read pp. 1-7 of Krugman's _The Great Unraveling_ (available from Google Books). NOW.

    by neroden on Sat Sep 03, 2011 at 01:16:58 AM PDT

  •  Lew Rockwell????? (3+ / 0-)
    Recommended by:
    sewaneepat, Karl Rover, skrekk

    The ultra-libertarian nutcase???   Just another thing that you "found posted on the internet"?

    Equality - I spoke the word as if a wedding vow, But I was so much older then, I'm younger than that now. Bob Dylan

    by Its the Supreme Court Stupid on Sat Sep 03, 2011 at 04:06:19 AM PDT

    •  Exactly what I was going to say. (2+ / 0-)

      Quoting people associated with the Austrian school of economics is not really any better than quoting some random anonymous commenter on a political blog.

      dnvpd, here is something you may not know since you don't like to read anything other than crazy commenters and crazy RW "economists."  Kossacks generally subscribe to the Keynesian economics, not Austrian or Chicago school, so to quote someone like Rockwell does not really make a good argument.

      Is there not a Ron Paul website for you to go to in order to discuss your "buy gold, end the Federal Reserve" nonsense?

      You can't scare me, I'm sticking to the Union - Woody Guthrie

      by sewaneepat on Sat Sep 03, 2011 at 06:02:54 AM PDT

      [ Parent ]

  •  No Lew Rockwell here, ever. n/t (1+ / 0-)
    Recommended by:
    deanarms

    Let us resolutely study and implement the resolutions of the 46th Convention of the Democratic Party!

    by Rich in PA on Sat Sep 03, 2011 at 05:16:30 AM PDT

  •  Pretty weak post (0+ / 0-)

    If you are reading any basic macroeconomics, the fear is stagnation and deflation.  Look at Japan's lost decade.  The Austrians are completely loony and this guy is no better.  Bernanke, remarkably, is probably one of the better economists to be in this position right now because of his scholarship on the Great Depression.  He understands where we're at right now and tried to help with QE 2.  There would be a QE 3 (and still may be) but for the "inflation hawks" on the fed who basically are advocating a hands off policy leading to austerity.  

    If inflation targets went to, say 4% on a sustained basis it could actually help us get out of the Great Recession, because businesses would actually start spending their hoarded cash.  

    I don't know what prompted you to put up a post like this on a progressive site.

  •  Ben controls Barack (0+ / 0-)

    Barack saw what happened to JFK when he signed a law that would have eliminated the illegal Federal Reserve ( a private corporation).

    If Bernanke tells the POTUS to eat feces he will do it.

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