Insta-Millard: Greenspan explains why and how Fed is accountable

April 30, 2014

A group of people, including a lot of the acolytes of Ron Paul, claim the Federal Reserve Bank system is a renegade organization, unaccountable to anyone.

Alan Greenspan, by the late, very great David Levine

Alan Greenspan, by the late, very great David Levine

Turns out that Ron Paul actually had the guts to ask Fed Chair Alan Greenspan about that.  Greenspan’s answer is worth watching, and hearing.

It was on CSPAN-2, so you probably didn’t see it.  Not the sort of thing Fox likes to run over, and over, and over again, to distraction.

Still looking for  video of Greenspan explaining the annual Fed audits that Ron Paul claims don’t exist . . .


Historian David McCullough: What is the value of education?

April 17, 2014

Historian David McCullough works on his vintage, historic Royal typewriter. Photo by Dorie McCullough Lawson. via Levenger Press.

Historian David McCullough works on his vintage, historic Royal typewriter. Photo by Dorie McCullough Lawson. via Levenger Press.

Branch banks of the Federal Reserve work hard to provide economic education; alas, in the era of state standards requiring “teach to the test,” a lot of this stuff goes unused.

What is the value of education?  The Dallas Branch of the Fed had historian David McCullough in for consultations; they asked him on video, and here’s his response.

“We must be an educated people. We cannot be a productive, original, innovative society if we aren’t educated.”

For more information, visit the Dallas Fed’s website.


No, the Fed has NOT discouraged saving

February 19, 2014

Fed can’t explain it, but, no, low interest rates appear not to have discouraged savings.  Tea Party catastrophe mongers won’t change their claims, though, I’ll bet.

Do they even look at the facts?

Also:  No, the Fed is not “flooding the nation with increased money supply.”

According to Rex Nutting at MarketWatch:

According to Rex Nutting at MarketWatch: “The Fed is not flooding the economy with money. The growth of the money supply has actually slowed since the adoption of QE3. Yes, the Fed has conjured about $1 trillion in the past year to buy super-safe Treasury and mortgage-backed bonds from the private sector in a bid to force investors to put their money into riskier investments that will help the economy grow a bit faster.

Nutting’s column at MarketWatch is worth the read just for the links he provides to documents that explain what the Fed does and how the economy works — documents that appear beyond the reading and perhaps beyond the ken of far too many critics of the Fed and actions we need to take to get to robust economy.

(Why, yes, Nutting is a veteran of the Daily Utah Chronicle and Utah’s journalism program.  Why do you ask?)

December 23, 1913: The Federal Reserve

December 23, 2007

Now, here’s an anniversary you won’t find many people celebrating — and that’s really a shame. The U.S. Federal Reserve System is a great idea, copied by most other free market nations, at least in part.

You almost get the idea Americans either don’t understand the Federal Reserve, or actually oppose it.

The Federal Reserve System

Federal Reserve Building
Federal Reserve Building, Washington, D.C.
Theodor Horydczak, photographer, circa 1920-1950.
Washington as It Was, 1923-1959

On December 23, 1913, President Woodrow Wilson signed the Owen-Glass Act, creating the Federal Reserve System.

Text from the Library of Congress’s “Today in History” site.

The Federal Reserve followed the Panic of 1908. Legislators hoped the Federal Reserve Board would be able to prevent future recessions. Clearly, considering the Stock Market Crash of 1929, and the Great Depression, it didn’t work as well as hoped.

Modifications in 1933 gave it even more power. The Federal Reserve today is regarded as a model for how a government’s central bank should be operated by many economists and most other nations.


“Evening at the Fed” Dallas registration deadline Nov. 22

November 21, 2007

Dallas-area economics, government and history teachers need to watch the deadline to register for the Dallas Federal Reserve Bank’s “Evening at the Fed,” scheduled for November 29, 2007.

Deadline to register is November 22.

Good dinner, continuing education credits (professional development), a few good ideas for your classroom. See my previous post, here.

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