Jun 15, 2016
Forbes writer John Tamny's latest book Who Needs The
Fed is a real gem. The Federal Reserve is one of the
most disliked entities in the United States at present, right
alongside the IRS. Americans despise the Fed, but they’re also
generally a bit confused as to why they distrust our central
bank.
Their animus is reasonable, though, because the Fed’s most famous
function—targeting the Fed funds rate—is totally backwards. John
Tamny explains this backwardness in terms of a Taylor Swift concert
followed by a ride home with Uber.
In modern times, he points out, the notion of credit has been
perverted, so that most people believe it’s money and that the
supply of it can therefore be increased. This false notion has
aggrandized the Fed with power that it can’t possibly use wisely.
The contrast between the grinding poverty of Baltimore and the
abundance of Silicon Valley helps illustrate the problem, along
with stories about Donald Trump, Robert Downey Jr., Jim Harbaugh
(the Michigan football coach), and robots.
Who Needs the Fed? makes a sober case against the
Federal Reserve by explaining what credit really is, and why the
Fed’s existence is inimical to its creation. Readers will come away
entertained, much more knowledgeable, and prepared to argue that
the Fed is merely superfluous on its best days but perilous on its
worst.