In today’s WSJ (“The Federal Reserve is causing turmoil around the world“), George Melloan, a former columnist and deputy editor of the Wall Street Journal editorial page, provides insightful commentary on the dangers to the US economy and world stability that are consequences of the current Fed inflationary policy. While not advocating elimination of the central bank, he provides a strong voice of support for current hearings going on under the guidance of Representative Ron Paul.
“The Fed is financing a vast and rising federal deficit, following a practice that has been a surefire prescription for domestic inflation from time immemorial. Meanwhile, its policies are stoking a rise in prices that is contributing to political unrest that in some cases might be beneficial but in others might turn out as badly as the overthrow of the shah in 1979. Does any of this suggest that there might be some urgency to bringing the Fed under closer scrutiny”?