Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
09 April 2018 | Pago Pago, American Samoa
An Informed Atheist Re-Addresses Christianity
10 March 2018 | Pago Pago, American Samoa
A Progressive Reform Program for America
10 March 2018 | Pago Pago, American Samoa
Supply Side and Libertarians Are Wrong and Not Supported by the Data
10 March 2018 | Pago Pago, American Samoa
How Income Inequality Injures People and the Economy
22 August 2017 | Pago Pago, American Samoa
A Democratic Reform Program for America
22 August 2017 | Pago Pago, American Samoa
The Supply Side Libertarians Are Wrong and Not Supported by the Data
22 August 2017 | Pago Pago, American Samoa
The Rise of Economic Ignorance
22 August 2017 | Pago Pago, American Samoa
The Rise of Corporate Dominance and the Rise of Income Inequality (Part VI)
22 August 2017 | Pago Pago, American Samoa
The Rise of Corporate Dominance and the Rise of Income Inequality (Part V)
22 August 2017 | Pago Pago, American Samoa
The Rise of Corporate Dominance and the Rise of Income Inequality (Part IV)
22 August 2017 | Pago Pago, American Samoa
The Rise of Corporate Dominance and the Rise of Income Inequality (Part III)
22 August 2017 | Pago Pago, American Samoa
The Rise of Corporate Dominance and the Rise of Income Inequality (Part II)
22 August 2017 | Pago Pago, American Samoa
The Rise of Corporate Dominance and the Rise of Income Inequality (Part I)
22 August 2017 | Pago Pago, American Samoa
Racial Hatred Is Confused
22 August 2017 | Pago Pago, American Samoa
What To Do About North Korea
22 August 2017 | Pago Pago, American Samoa
On Neoliberalism
22 August 2017 | Pago Pago, American Samoa
Ban Hate Marches and Assemblies
22 August 2017 | Pago Pago, American Samoa
On Miss Piggy and Mr. Pork
22 August 2017 | Pago Pago, American Samoa
The Demise of the Democratic Party
09 August 2017 | Pago Pago, American Samoa
On Elitism

Two Conflicting Viewpoints on the Fed, Chart 1

28 May 2016 | Pago Pago, American Samoa
Kimball Corson
The Fed has Done Well

In recent times, the Fed has gotten it just about right. The have done an impressive job. The Fed's responsibility is maximizing growth and employment; they accomplish that by ensuring liquidity so the real economy can adjust to changes in technology and demographics. They are not responsible for managing every sector of the economy. Nor should they try.

The Fed Has Not Done Well

The Fed has hugely distorted financial asset markets and prices by lowering interest rates and therefore also present valuing discount rates, pushing financial asset prices up, lining the pockets of the rich and flooding markets unnecessarily with excessive liquidity, which also line the packets of the rich, all seriously exacerbating the income inequality we have in the US. In turn, the rich now hoard the excessive liquidity, causing us to sit in a liquidity trap where the Fed is largely powerless. The Fed has also pushed the velocity of money down and it has by all these means painted itself into a corner.

Even on good days, the Fed has next to no capacity to control growth, nor employment much at all. Congress controls government spending, deficits and taxes, which are primary the keys to control growth and employment. 42% of America's working age population are unemployed compared to 30% less than 15 years ago. So much for increasing employment. Chart 1

The Fed's control over the real economy, as opposed to the financial sector. is much less than it supposes. The Fed largely serves and is run by Wall Street. Indeed, former employees of the big banks sit on the Board, are the heads of many of the reserve banks and occupy other keys positions in the Fed.

Historically the Fed's legislative charge under the Fed reserve act was to use monetary policy to provide for price and therefore economic stability in the face of the changes mentioned. For how it has done there, see Chart 2. The Fed has assumed much greater powers that given it and has wrought serious havoc and instability on the economy while not properly exercising its regulatory powers over the banking system that controls it and too often runs wild and amok.
Comments
Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
Altaira's Photos - Main
No items in this gallery.

Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ