United States, FED, William Kennedy Martin discussed on The Meb Faber Show


What about now or interest rates going up to be a problem in one of my favorite things that you published many years ago and updated more recently was concept of a balance sheet of the united states so if you'll see to answer that question anyway you want is is our data problem is there any risk to what what's going on the fed and you can feel free to illustrate with the balance sheet as well sure so i you know as william kennedy martin famously kinda talked about he was the head of the longrunning headed it said over and fifties into fifty and kinda famously said that when you come head of the fed to take a little pill and it makes you forget everything ever knew it lasts as long as you head of the fed which later became referred to as martin's little pill as a play on what used to be famous carter's little liver pills it didn't do anything and the fact is milton friedman would've told you when i was a boy that central banks have just batch it crazy and they're gonna be bat shit crazy and if you expect them to be anything but bad shit crazy it's wrong and we always have and we've had from ever fear of losing the great head of the central bank that we have until we get the next one and then the next one and the next one and they all do stupid stuff and central banks in the developed world outside of america central bankers do stupid stuff and the notion that they can find to the economy through interest rate wiggles milton friedman debunked again you know before i was old enough to redeem and the fact is i was true then true now things are a little different now than they were then but said simply there's the fed on the one hand and then there's the other issue which is i mean do with the fed per se which is death and you know debt comes from school policy and then there's private sector debt and then you can build a balance sheet out of.

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