A Barbarous Fed… | Bonner & Partners

In pre-civilized days, commercial transactions were difficult and complex – usually involving a credit-based system which left obligations stretching forward into the future, often unresolved over many generations. Civilized man developed modern money – typically gold – which made it much easier to settle up and move on.

But the most profound difference was that barbaric people used force and violence to get what they wanted; civilized transactions are based on mutual consent and cooperation.

But wait. Where does that leave the dollar and the Fed?

Does the Fed allow willing buyers and sellers to set interest rates as they choose? Or does it force the issue… pushing interest rates around as though they were travelers in the airport security line?

Does the Fed permit investors to discover asset prices without interference? Or does it try to fix prices, claiming that it knows better than the rest of the world put together?

via A Barbarous Fed… | Bonner & Partners.

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