Back to Quack Off
J'accuse, Mr. Federal
Reserve did it with the Candlestick, the Revolver, the Rope, the Knife, the
Wrench, and the Lead Pipe in the House, the Senate, the University, and Wall
(Aug 23, 2007)
to whom? Where? And with what?
Wall Street, NY – A murder occurred on Wall
Street last week. You're an investor-detective. Your job: figure
out whodunnit to whom? And with what? Ready to play CLUE?
Ms. Stock Market was found
beaten, shot, strangled, and stabbed to death last Friday in what appears to
have been a grisly long-term torture and murder on Wall Street. The
killer was sloppy and left clues strewn all over the place.
Free market detective Phillip
Marlowe reported, "Although the vic was found dead on Wall Street, the body
was killed elsewhere, tortured for many years in the Billiard Room, the
Library, the Lounge, the Conservatory, the U.S. House, the Senate, every
University in the country, Wall Street investment houses, most banks, and
finally dumped at this location last Friday."
"Got any clues?" asked Deep
Throat II from FM Duck Journal.
"Yeah," said detective Marlowe,
"we suspect this was the work of the serial killer who calls himself The
At this point in the game,
you're probably asking yourself, how can the culprit be the Federal Reserve?
Isn't the Federal Reserve supposed to be the solution to prevent stock
market crashes, recessions, and depressions in America?
Time for a refresher course in
basic free market economics 101A, mes amies. Time to review the terms
free market, money, and price formation.
First, a free market is an
economy in which individuals are free to voluntarily exchange ideas,
services, and commodities without governmental intervention. The only
function of government is to provide an objective judicial system to prevent
the initiation of force or fraud. It is not the function of the
government in a limited free republic to "manage" the free market, either
through a central bank or other bureaucracies. Therefore, a true free
market has no need of a central bank such as our current Federal Reserve to
"manage" or manipulate the market. A "managed" market is the trait of
all collectivist governments such as socialism, fascism, and communism.
Second, money is a commodity
and paper money is an IOU or a promissory note for a specific amount of that
commodity. (see 05-26-2007
What is paper money?
Currently, the U.S. does not use either real money
or real paper money. We use fiat
(or forced) currency with no commodity backing whatsoever. Our forced
money is hyper-inflated by the Federal Reserve and is becoming worth less
every day, devaluing at an exponential rate. Therefore, the Federal
Reserve has created the current stock market and monetary crisis and when it
"injects liquidity" (inputs even more Funny Money into the market), it is
actually ratcheting up its hyper-inflation of our fake money supply to
benefit special interest groups (such as the bankers and Wall Street
investment houses) and devaluing everybody's unit dollar. The Federal
Reserve is not our economic savior. The Fed is the culprit who caused the mess
in the first place with their "managed" monetary policies.
Third, price formations in a
free market are not the result of quantitative valuations inherent in either
labor or any commodity. Prices are qualitative priorities, emotional and otherwise, determined by individuals freely trading in a free
market. Governmental interference in the pricing mechanism of a free
market through direct intervention or through central banks such as the
Federal Reserve destroys the pricing mechanism which can only be brought about by
qualitative decisions of supply and demand. Intervention by the Fed produces unintended
future economic consequences as well as wrecking all means of future
economic calculations -- which, by the way is precisely why socialism always
In short, intervention by the Federal Reserve destroys the very thing that
the free market needs to dynamically correct itself: free market price
Why do we put up with private
central bankers (the Federal Reserve) attempting to pull off the
oxymoron of "managing" a free market? Congress wants Funny Money so it
can play deficit financing without continually asking U.S. citizens for
trillions of dollars every year. University PhD.s in Econ have bought
off on Quantitative Collectivist Economics because they think it makes their
"dismal science" more scientific. They don't understand the
difference between the fundamental reasoning methodology underlying physics
and chemistry (the scientific method) and economics (qualitative methods).
Both methods are legitimate, but only within their own disciplines and
cannot be interchanged.
So, you ask, who murdered Ms.
Stock Market last week? J'accuse, Mr. Federal Reserve did it with the
Candlestick, the Revolver, the Rope, the Knife, the Wrench, and the Lead
Pipe in the U.S. House, the Senate, all Universities, and Wall Street. -- FM Duck
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