By Ron Paul
The Fed has been scrambling around of late, with several secret meetings. One of those meetings was Fed Chair Janet Yellen heading over to see President Obama. Since the Fed is not political, Yellen probably just had a chat with the president about family things, right?
All kidding aside, what's the motivation behind these secret meetings? After all, the statistics that are being presented to the American people portray everything as being OK. But do these secret meetings hint to the possibility that the Fed is a lot more concerned than we're supposed to believe?
Do you think free markets and sound money were discussed in these meetings? Will the NSA provide us with recordings of the conversations? Don't bet on either!
The Fed was created to act as a backstop for the big banks as well as the financier of big government and it will continue to play that role. In the meantime, the rest of us must go through one artificial economic bubble after another.
The last few decades have been especially tumultuous. We've gone through the Nasdaq bubble, followed by the housing bubble, and now we have a major bond bubble that has propped up all different kinds of bad debt.
The whole system is a bubble when you get down to brass tacks.
Ultimately, central planners lose control of the situation. It's inevitable. There is no way that price-fixers can know what interest rates should be. Only the market can properly determine interest rates and the market always wins in the end. If there's one thing that you should never forget, it's that the market always defeats governments (or their central banks).
Are we on the precipice of The Fed losing control? Maybe, or maybe not. But it appears that they are scrambling.
Whether or not the day is near or far, the Fed will at some point reach into their hat only to find out that there are no rabbits left.