Monday, April 28, 2008

It's All the Greenspan-Put-Helicopter-Ben-Fed's Fault

I love it when someone more influential than I says what I've been saying in my little blog.

Today, it's the editorial commentator at the Wall Street Journal.

He lays fault for the current commodity bubble directly at the feet of the Fed.

He blames:

1. Political pressure (i.e. Fed weakness); and

2. Intellectual mistakes (i.e. the Fed's bad economic science).

I agree. You've been reading my arguments over the past months and years along these lines.

I would add that Bernanke is personally responsible, due to his reliance upon a faulty interpretation of the 1929 Great Depression as described in his own academic work.

[Thanks to for this great illustration of the Naked Emperor.]

He is wrong and the Austrians are right about 1929, as was Edward C. Harwood.

But patience, patience my friends. We must have faith that good science will win in the end--the long-term end, I mean, which could be well after our own lifetime expires.

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