John McCain's economic advisor: Steve Forbes and his big fumble
Mark Anderson
November 03, 2008
There is a video clip - posted below - that is circulating around the internet, being advertised as Steve Forbes' "heroic" stand against the Federal Reserve. One little problem: it isn't a stand against the Fed, but for the Fed.
As you can see, Forbes starts out by correctly faulting the Federal Reserve for having created "excess liquidity" - i.e., inflation. The first indicator of problems with his argument, however, is using the word "excess," which implies some proper amount of Fed-generated "liquidity." In reality, ANY Fed-generated "liquidity" is excessive.
Forbes spends most of the interview marching the football down the field in a magnificent drive. He gets all the way down to the five-yard line, but then fumbles. Be sure to see the last part of the interview for that.
What does Forbes say needs to be done to "cure" our economic problems? The Fed needs to generate more "liquidity." Albeit, the word "liquidity" gets morphed into "equity," and it is Fed-generated inflation in disguise - i.e., on the fiscal side.
Forbes then chastises banks for "hoarding" cash and calls for a renewal of the inflationary credit orgy that he so saliently faulted in the first half of his interview. He says all of this without the faintest bit of irony, and with a straight face.
With "advocates" like these, who needs opponents?
As you can see, Forbes starts out by correctly faulting the Federal Reserve for having created "excess liquidity" - i.e., inflation. The first indicator of problems with his argument, however, is using the word "excess," which implies some proper amount of Fed-generated "liquidity." In reality, ANY Fed-generated "liquidity" is excessive.
Forbes spends most of the interview marching the football down the field in a magnificent drive. He gets all the way down to the five-yard line, but then fumbles. Be sure to see the last part of the interview for that.
What does Forbes say needs to be done to "cure" our economic problems? The Fed needs to generate more "liquidity." Albeit, the word "liquidity" gets morphed into "equity," and it is Fed-generated inflation in disguise - i.e., on the fiscal side.
Forbes then chastises banks for "hoarding" cash and calls for a renewal of the inflationary credit orgy that he so saliently faulted in the first half of his interview. He says all of this without the faintest bit of irony, and with a straight face.
With "advocates" like these, who needs opponents?
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