When the Fed stops building and the Mint stops printing: Rebuilding the American Economy.
A long title for this breakout session sponsored by the Heritage Foundation but it got my attention. The event was moderated by the well-known Steve Moore. Founded in 1973, The Heritage Foundation is a research and educational institution—a think tank—whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. And one way to limit the government is to reign in poor fiscal policy. Steve talked about the Feds policy and its influence on politics and vice-versa. It’s an unholy alliance. Political policy has no place in monetary policy, but as we well know its does. And the value of our currency takes the hit.
Mr Moore said: “Fed policy of printing money and artificially lowering interest rates doesn’t create jobs. In fact Ben Bernanke himself said it never does.”
Marlin said we need to implement The Taylor Rule when it comes to monetary policy. In economics, a Taylor rule is a monetary-policy rule that stipulates how much the central bank should change the nominal interest rate in response to changes in inflation, output, or other economic conditions. In particular, the rule stipulates that for each one-percent increase in inflation, the central bank should raise the nominal interest rate by more than one percentage point. Stutzman said the rules the FED use now are meaningless, they never follow them.
Another panelist spoke up and the conversation quickly did a sharp turn. Cathy Reinsenwitz, an Editor at Young Voices and a D.C.-based writer and political commentator. She is Editor-in-Chief of Sex and the State, a regular contributor to Bitcoin Magazine, and her writing has appeared in Forbes, the Chicago Tribune, VICE Motherboard, Reason magazine, Talking Points Memo, the Washington Examiner and the Daily Caller. Cathy steered the conversation to bitcoin and it never turned back. Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009 by developer Satoshi Nakamoto. Ms Reinsenwitz lauded the virtual currency as a superior alternative to Federal Reserve notes. Dollars and the value thereof can be manipulated by the Fed, bitcoin cannot. No more bitcoins can be made, therefore the market decides its value. The other panelists seemed disinterested in bitcoin and two of the panelists said they knew little about it.
I left the session wanting more information on Fed policy and less on bitcoin.