New York Fed: Leave the Building!

I’d like to share a post with you this morning.  It is the prepared remarks by Robert Wenzel of the Economic Policy Journal for a speech given at the NY Federal Reserve building.  His speech title is also my post title: Leave the Building!  Below I’ve pulled some of his quotable quotes as is my habit.

Intellectual discourse is, of course, extraordinarily valuable in reaching truth.

Hear! Hear!

I suspect my views are so different from those of you here today that my comments will be a complete failure in convincing you to do what I believe should be done, which is to close down the entire Federal Reserve System.

Due to his reception I don’t think it was a complete failure.  In reading the afterword remarks in the linked article I’d say it was a pretty positive reception considering the things he said.

I stand here confused as to how you see the world so differently than I do.

An true statement.  Despite the fact that I feel I know what they think, the truth is Keynesian economic thought patterns utterly confuse me.

There are no such constants in the field of economics, because the science of economics deals with human action, which can change at any time.

I scratch my head that somehow most of you on some academic level believe in the theory of supply and demand and how market-setting prices result, yet you deny them in your macro thinking about the economy.

I add, that since the founding of the Federal Reserve has resulted in an increase of the money supply by 12,230 percent.

Since the start of the Fed, prices have increased at the consumer level by 2,241 percent.

Take the prior two quotes.  12,230 percent increase in the money supply, but a 2,241 percent increase in prices.  This implies that there has been a 5.45  fold (12,230/2,241) increase in the wealth of this country.  5.45 fold spread over the past 99 years since the founding of the fed is average 1.7% wealth gross, year after year.  Amazing what compounded increase does over a century.

In conclusion, it is my belief that from start to finish the Fed is a failure.

I believe faulty methodology is used. I believe that the justification for the Fed, to bring price and economic stability, has never been a success.

Again, thank you for inviting me. You have prepared food, so I will not be rude — I will stay and eat.

Let’s have one good meal here. Let’s make it a feast. Then I ask you, I plead with you, I beg you all, walk out of here with me, never to come back. It’s the moral and ethical thing to do. Nothing good goes on in this place. Let’s lock the doors and leave the building to the spiders, moths, and four-legged rats.

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