Tuesday, September 28, 2010

Change of Heart Over Stimulus and FED

In a grand turn of event's Telegraph reporter Ambrose Evans-Pritchard has reversed his pro-Fed, pro-stimulus position, issued an apology, and is now calling for an end to the central bank. This marks an important milestone for those of us who call for a return to sound money. People are starting to realize that the emperor has no clothes when it comes to fiat currency and interventionist fiscal policy and are waking up from their state-induced dream. Let us welcome these new converts as they join the battle against Leviathan's central banking and fiat currency system. 

My favorite line from Ambrose reads, "My apologies. Mercy, for I have sinned against sound money, and therefore against sound politics."

 I encourage you to read the whole piece. It begins:

I apologise to readers around the world for having defended the emergency stimulus policies of the US Federal Reserve, and for arguing like an imbecile naif that the Fed would not succumb to drug addiction, political abuse, and mad intoxicated debauchery, once it began taking its first shots of quantitative easing.
My pathetic assumption was that Ben Bernanke would deploy further QE only to stave off DEFLATION, not to create INFLATION. If the Federal Open Market Committee cannot see the difference, God help America.
We now learn from last week’s minutes that the Fed is willing “to provide additional accommodation if needed to … return inflation, over time, to levels consistent with its mandate.”
NO, NO, NO, this cannot possibly be true. (Read the rest here.)

1 comment: