The Curious Case of Benjamin Strong.

we got it piezoe, according to Soros, relying on the market to bring about equilibreum could be as irrational as markets sometimes become.

But then again, relying on the fed could be as irrational as sometimes well meaning human beings become.

The question is, who is the most rational judge when it comes to sentencing the guilty for the crime they have committed? The market may be too lenient to the guilty, the fed may be too compassionate to the victims.

The market is like the stern father who demands the kid pay for his screwup.

The fed is like the compassionate mother who insists he needs a second, and third, and fourth etc chance.

No real content here, just finally understanding what metaphors are. It's a beautiful thing. I could live in a whole metaphorical world and probably be quite happy. As long as everything is sort of like something else it all makes sense.

 

Is the question so much what they are trying to do? Or how they are doing it?

 

Thanks to the central bank we even have a market to complain about. Half of Wall Street would be working a manual plow in upstate New York if there is no intervention. By the way, all money is man made, created by man. There will never be a free market, get over it and live life accepting what is reality.

 

Should they use the interest rate to intervene though?

 

yes, that is really the crux of the question. Do price controls work?

 

never have. never will. it only creates black markets with accompanied inefficiencies and profits for the mafia.

 

They could use another mechanism that does not have the consequences.

 

such as?

 

Short answer yes. If you're sitting inside the Federal Reserve do you feel safe not doing something? All money is born from human decisions where the humans behind the decision to loan don't have to put up a "consideration". So let's see, 7 billion people on this planet, 5% of the population sits in a nation that has the potential to destroy the rest or starve it, a history of acting independently and revolting. What are they gonna do? Rely on cable news to convince people not to charge the castle? Won't work. Milton Friedman himself is not man enough to pass up 21st century comfort for anything less. Gas lines that heat the Chicago School chopped, he will come to see what Free Market means. Everything is free market, everything open to being dismantled for something worse. The free market depends on government for a currency decree. After that, this phony debate goes out the window. Graduation Day.