Jim Grant on the Fed’s “Atlas Complex”

Jim Grant of Grant’s Interest Rate Observer has some more thoughts about the Federal Reserve, likening the way they see the world to Atlas’s view, as if all the world’s economic problems are being carried on their shoulders rather than the alternative approach that seemed to work so well during the 1920-21 depression when the economy healed itself rather quickly when left to its own devices.

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The Atlas Complex discussion starts at about the 5:45 mark and is followed by some observations about Fed Chief Ben Bernanke’s double-standard on prices. In general, the Fed sees prices as being the “critical guiding mechanism” of a market economy, however, that applies to all prices except for the price of money (i.e., interest rates) that only the central bank seems to know best.