Economist Mag Defends Fed With an Ode to the Dead

from The Daily Bell

Age shall not weary her… America’s central bank has become ever more powerful over the past century … As the holiday season of 1913 drew near … Congress was still fighting over a bill to create the Federal Reserve, and Wilson had threatened to keep it in session over Christmas until the bill was ready for his signature. A century later, the Fed is still overshadowing the festive season: as The Economist went to press, it was meeting to consider curbing its massive purchases of government bonds. What is more, the debate over its role is as febrile as ever. To succour the economy, it has in recent years bailed out chunks of Wall Street and taken on new oversight of the financial system, in addition to accumulating over $3 trillion in bonds. Many, including one of its former chairmen, Paul Volcker, worry that the Fed is “getting too big for its breeches”… – The Economist

Dominant Social Theme: Long live the Fed. You may think it’s a horrid, ruinous, wealth-draining facility, but in the 21st century it’s as vital as ever. And what’s a little controversy between friends?

Free-Market Analysis: The funniest thing about this article – and there are many portions that are at least incongruous – is the short excerpt that was selected as the article’s title, above, “Age Shall Not Weary Her.”

It comes from the “Ode of Remembrance,” by English poet Laurence Binyon, who wrote it in sorrow and shock at the carnage of World War One.

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