{"id":26524,"date":"2017-10-07T07:39:37","date_gmt":"2017-10-07T12:39:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26524"},"modified":"2017-10-07T07:39:37","modified_gmt":"2017-10-07T12:39:37","slug":"federal-reserve-president-kashkaris-masterful-distractions","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26524","title":{"rendered":"Federal Reserve President Kashkari\u2019s Masterful Distractions"},"content":{"rendered":"
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Federal Reserve President Kashkari\u2019s Masterful Distractions <\/a><\/h3>\n<\/div>\n
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 <\/p>\n

The True Believer<\/strong><\/p>\n

How is it that seemingly intelligent people, of apparent sound mind and rational thought, can stray so far off the beam?\u00a0 How come there are certain professions that reward their practitioners for their failures? The central banking and monetary policy vocation rings the bell on both accounts.\u00a0 Today we offer a brief case study in this regard<\/p>\n

\"\"Minneapolis Fed president Neel Kashkari attacking a block of wood with great zeal. [PT] \u00a0 \u00a0Photo credit: Linda Davidson \/ The Washington Post<\/p>\n

Minneapolis Federal Reserve President Neel Kashkari is a man with strong convictions.\u00a0 He is what the late Eric Hoffer would have classified as \u201cthe true believer.\u201d\u00a0 According to Hoffer:<\/p>\n

\u201cIt is the true believer\u2019s ability to \u2018shut his eyes and stop his ears\u2019 to facts that do not deserve to be either seen or heard which is the source of his unequaled fortitude and constancy.\u00a0 He cannot be frightened by danger nor disheartened by obstacle nor baffled by contradictions because he denies their existence.\u201d<\/em><\/p><\/blockquote>\n

For starters, Kashkari believes the Federal Reserve, an unelected board of bureaucrats, can crunch economic data into pie graphs and bar charts and draw conclusions as to what they should fix the price of credit at.\u00a0 Moreover, he believes that by fixing credit at the \u201ccorrect\u201d price, the Fed can somehow \u201coptimize\u201d the economy.<\/p>\n

This idea is patently false.\u00a0 Remember, the economy is comprised of billions of people with ever changing interactions.\u00a0 Activities and exchanges are always adapting.<\/p>\n

What may be the correct price of credit at one time is precisely the wrong price of credit at another.\u00a0 Only a free market for credit, where rates are agreed to by willing borrowers and lenders, and unobstructed by government decree, can self-correct in real time to properly meet changing supply and demand.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Federal Reserve President Kashkari\u2019s Masterful Distractions   The True Believer How is it that seemingly intelligent people, of apparent sound mind and rational thought, can stray so far off the beam?\u00a0 How come there are certain professions that reward their practitioners for their failures? The central banking and monetary policy vocation rings the bell on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,303,2127,11763,3650],"class_list":["post-26524","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-fed","tag-interventionism","tag-mn-gordon","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26524"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26524\/revisions"}],"predecessor-version":[{"id":26525,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26524\/revisions\/26525"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}