The Federal Reserve’s Poor Job

We unfortunately use Federal Reserve edicts as gospel, even though they often are proven wrong. This has been the case in almost half the decisions we have gotten under the auspices of the governorships of Alan Greenspan and Ben Bernanke.

We have to remember that economists are fallible, even when they direct the Federal Reserve.

In the past, those in the Fed worried we may have deflation; they therefore inflated the economy, and added too much currency. In fact the Fed, almost automatically, has been on the side of targeting some inflation, in an attempt to prevent deflation.

Thus, the Fed has been the chief culprit, causing bubbles which invariably lead to busts and eventual depressions.

And today is aiding and abetting inflation with the buying of Treasury bonds.