I feel as if I just wrote this post…earlier today. But like a four-pound fruitcake, it has returned – only wrapped in different paper.
I just posted regarding Mauldin’s views of central bank policies. Now, like the discomfort associated with a bad meal, I must suffer through the tasting of it once again. This time it’s Mark A. Calabria at Cato. You know, that Cato:
The Cato Institute is a public policy research organization — a think tank – dedicated to the principles of individual liberty, limited government, free markets and peace. Its scholars and analysts conduct independent, nonpartisan research on a wide range of policy issues.
Wait, there’s more:
The mission of the Cato Institute is to originate, disseminate, and increase understanding of public policies based on the principles of individual liberty, limited government, free markets, and peace. Our vision is to create free, open, and civil societies founded on libertarian principles.
So what does Mr. Calabria have to say?
To help the economy, the Federal Reserve should begin raising rates immediately and bring its preferred policy rate, the federal funds, to a more neutral stance.
Once again, I can do no better than Eliza:
Words, words, words
I'm so sick of words
I get words all day through
First from him now from you
Is that all you blighters can do?
First from Mauldin, now from Cato. Is that all you blighters can do?
Everyone has a central plan, one that they can call their very own.
It was a housing boom and bust that contributed primarily to the recession and financial crisis.
No it was central planning in money and credit, combined with government incentives to increase homeownership.
Ultimately, interest rates should be determined by the interaction of savers and investors, not driven by the arbitrary whims of government officials in Washington.
And how might you remove those arbitrary whims? Just what do you suggest Mr. Cato? Anything to say about the whimsical central planning of money from Washington?
That’s what I thought.
So much for limited government and free markets.