Tuesday, October 21, 2014

Cato Shrugged Opens Center to "Challenge" Fed

The Cato Institute has announced that it is opening "a new research center that its president says will fundamentally challenge the central bank and its monetary policy." 

So just how is Cato going to "challenge" the Fed?

Apparently by giving away the game and assuming that it is a good idea that the Fed should be manipulating the money supply and interest rates in the first place.

The Washington Examiner reports:
Cato scholars will weigh in on the topics confronting monetary policy makers, such as how the Fed should move back toward normal monetary policy after amassing a $4.5 trillion balance sheet while trying to boost the economy in the wake of the 2008 financial crisis.
They also will work in their capacity as a libertarian think tank to affect legislative efforts relating to the Fed, such as a recent effort by House Republicans to require Fed officials such as Chairwoman Janet Yellen to compare their monetary decisions to those that would have followed from a simple monetary policy rule.
If you ever want to show someone an excellent example of why you should never trust Beltarians, this new attempt by Cato to "challenge" the Fed is it.

The Fed shouldn't be moving back toward any "normal" Fed policy, The Fed has been a disaster since it started. (SEE; The Fed Flunks). It should be ended.

Further, "a simple monetary policy rule," is simply a method to determine the degree of  money inflation. It is simply an absurd concept promoted by government apologists, that allows cronies manipulating the government and the government, itself, to get their hands on newly printed money before others do. That's why the gap is growing between the super-wealthy and the rest of us (SEE:The Bottom 90 Percent: No Better Off Today Than in 1986).

Bottom line: Any Fed money printing is criminal activity.

And what does George Selgin, the new head of the Cato monetary center, say about this money printing criminality:
Selgin added that monetary policy rules that predictably set the value of the dollar are “reasonable compromises” short of his preference of ending the Fed.
Yes, another Beltarian, who "theoretically" wants to shrink government, but on a practical value considers it a "reasonable compromise," that it should continue to rob the people. This is just what the crony elitists love, inside the Beltway technocrats that couch their advocacy of continued government interventions in libertarian wrapping to confuse and dilute the libertarian message.

For the truth about the Fed and a real handbook on how to fight it, read Set Money Free: What Every American Needs To Know About The Federal Reserve by Chris Rossini. As Ron Paul put it, when commenting on the book: ".People looking to spread the ideas of liberty should consider buying multiple copies of this book to hand out to friends, relatives, and co-workers to show them why ending the Fed is key to restoring liberty, peace, and prosperity."

People who follow Ron Paul's advice are going to be doing a lot more to fight the Fed, then the criminal compromises that will be going on at Cato.


  1. I have a copy of the US Constitution and Declaration of Independence that the Cato Institute produced. Nowhere in there does it mention, "normal monetary policy."

    These people are worse than frauds. They are advocating crime.

  2. RW - Couldn't agree more with your critique. I met George Selgin in the early 1980's and received a copy of his dissertation which was ultimately published as The Theory of Free Banking. Although flawed in part by his proposal to use FRN's as a "base money" as opposed to an industry that would be free to determine its own "base money", it was exciting to have new academic support for the abolition of the FED. Both Selgin and Lawrence White thought we were at the beginning of significant changes in banking. Unfortunately that was not to be. After he spoke to our group I asked Selgin in private if he could offer suggestions on what my fellow bankers could do to actually abolish the FED. He was quick to respond that he could be of no help in this regard and that it was "up to you" to make this happen. I came to realize this was wrong, we cannot depend on the banking industry to reform itself. Reform can only come from outside the industry, even outside politics. Yet Selgin continues inside the system that apparently rewards him.

    1. Selgin is still butthurt that Murray Rothbard, whilst initially praising his and White's work, ended up scathingly condemning it and thoroughly debunking it, particularly the historical bits. I'm pretty sure he was hoping to make a "significant contribution" to Austrian theory and when the Dean said it was crap, he never got over it.