Whenever a mainstream politician attacks the Federal Reserve System we should rejoice. Even if it’s just a political maneuver that attempts to gain libertarian-leaning voters, it should be welcomed. For far too long, establishment politicos have often ignored the United States central bank.
We can thank Ron Paul for bringing the Fed to the forefront of public discourse.
So who exactly is talking about the Fed this time? None other than New Jersey Republican Governor Chris Christie, who may be running for the 2016 Republican nomination.
Speaking at a Republican forum sponsored by Florida Governor Rick Scott at a Disney convention center Tuesday, the GOP governor lambasted the central bank for its easy money and zero percent interest rate policies that he believes are destabilizing the economy and widening the gap between the rich and poor.
Christie explained that these policies were justified for a certain period of time, but now it’s just exacerbating the financial issues inflicting pain upon the American people.
“The printing of money that we’re doing and the extraordinary borrowing we’re doing all around the world is going to come home to roost,” said Christie.
This isn’t the first time that Christie has directed his vitriol towards the Fed.
Last month, he delivered a speech in New Hampshire, where he attempted to find a connection between low interest rates and an increase in income inequality. Christie averred that cheap money lifted stock prices, while injecting vast sums of wealth to people who were already affluent.
Finally! Someone in the elite bringing out this important fact.
The Fed prints out money and those freshly created Federal Reserve Notes are allocated to the elite and the well-connect. As this money funnels throughout the rest of the economy, the average person is given an eroded dollar and rising price inflation.
Ben Bernanke: Hey, don’t blame me for income inequality
Former Federal Reserve Chairman Ben Bernanke wrote in a blog post last week that the central bank’s quantitative easing initiative isn’t to blame for rising income inequality. Instead, he believes it’s a long-term trend.
“As the rich own more assets than the poor and middle class, the reasoning goes, the Fed’s policies are increasing the already large disparities of wealth in the United States,” Bernanked opined.
“First, widening inequality is a very long-term trend, one that has been decades in the making. The degree of inequality we see today is primarily the result of deep structural changes in our economy that have taken place over many years, including globalization, technological progress, demographic trends, and institutional change in the labor market and elsewhere,” he wrote.
“By comparison to the influence of these long-term factors, the effects of monetary policy on inequality are almost certainly modest and transient.”
“Policies designed to affect the distribution of wealth and income are, appropriately, the province of elected officials, not the Fed. Alternatively, if fiscal policymakers took more of the responsibility for promoting economic recovery and job creation, monetary policy could be less aggressive.”
Final Thoughts
Christie also outlined a simplified tax code with lower taxes and a reduction in regulations. This is something that should be ignored because it seems every single politician in an election year, whether Republican or Democrat, advocates this policy, but it usually results in highers taxes and more red tape.
But does Christie really believe in what he is saying? Where were his criticisms before? As he cited Rothbard or Mises? In all likelihood, this is simply a ploy to gain Rand Paul supporters who feel disenfranchised with the Kentucky Senator.
In 2016, it’s likely that you’ll see these kinds of messages being put forward by the likes of Rand Paul and now Christie. Other moderate Republicans, such as Jeb Bush, Marco Rubio, Lindsey Graham and others, have ignored the central bank from their campaign platforms.
Why should they? They’re all itching for another war and the only way to finance these foreign adventures is through the Fed.
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