Think the Fed’s QE1 and QE2 will cause hyper-inflation? I did, until I read Jeffrey Rogers Hummel’s recent paper “Ben Bernanke Versus Milton Friedman”. Bernanke is simply shuffling paper around to bail out his bankster buddies and he is doing it without increasing the money supply – despite popular belief.
As impressive as that is, there is a severe downside. The Fed-manufactured crises of 2008 has literally made them the economy’s central planners. Here is an excerpt from Hummel’s paper:
Under the old central planning—which performed so poorly in the Soviet Union, Communist China, and other command economies—the government attempted to manage production and the supply of goods and services. Under the new central planning, the Fed attempts to manage the financial system and the supply and allocation of credit.
But now with Bernanke, the central planning aspect of central banking has become far more encompassing. As George Selgin put it in an interview, “the Fed . . . has morphed into a central planning agency with a corporate welfare department.”