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That time of the week again

May 22, 2010

The Classic Liberal linked my post regarding Conor Friedersdorf and Dustbury linked regarding my rant about Reason’s misleading article regarding the “26 Page Brownie Recipe”.

While looking up these links I came across a link at The Classic Liberal called “A Story of ‘End the Fed”. It’s the story of a woman trying to sell Ron Paul’s “End the Fed” at a rummage sale and the part that interested me was this –

Well, we began a discussion, with her contention being that the Fed has brought stability, as beforehand there were many economic downturns. I asked her if she thinks things are truly better now, keeping in mind that the period since the creation of the Fed includes both the Great Depression and the present downturn, as well as the massive destruction of the dollar which has taken place. Incomprehensibly she insisted that things are better now, thanks to the Fed.

From 1797 to 1913 there were 29 recessions / depressions the average time between downturns was 28 months and the average duration 25 months. Since the creation of the Fed the average time between downturns has been 49 months and the average duration has been 13 months. So arguably the Fed has been doing it’s job. During the Free Bank period, which is what the end the fedders really want to return to the average time between recessions was 25 months vs. 35 for the period under the Second bank of the United States and duration averaged 22 months vs. the 25 under the previous system. Both significantly worse than under the Federal Reserve system. In regards to the destruction of the Dollar, I dispute what end the fedders call the destruction. Yes, there is inflation but most economists will tell you that real purchasing power has increased. In other words despite higher prices Americans are actually richer.

-elsewhere-

Rand Paul is till making news. Personally I think his cancellation of his Meet the Press appearance was a bad idea.

The NY Times looks at public pensions. They are pretty scathing in their criticism.

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