{"id":668,"date":"2011-12-24T18:08:19","date_gmt":"2011-12-25T01:08:19","guid":{"rendered":"http:\/\/gashler.com\/nlc\/?p=668"},"modified":"2013-12-31T23:12:39","modified_gmt":"2014-01-01T06:12:39","slug":"fed-helps-feed-lnflufioh","status":"publish","type":"post","link":"https:\/\/gashler.com\/nlc\/?p=668","title":{"rendered":"‘Fed’ Helps Feed lnflation"},"content":{"rendered":"

\"Click<\/a>What really is the basic\u00a0cause of inflation?\u00a0<\/span>Even this far into the <\/span>frustrating fight against\u00a0<\/span>crippling inflation, many\u00a0<\/span>Americans – extending to\u00a0such high places as\u00a0Congress – continue to
\nponder the question.\u00a0And, as Rep. William E.\u00a0Dannemeyer, R-Calif.,\u00a0noted in a recent house\u00a0speech, “Until we agree on
\nwhat that cause is we cannot begin to deal with the\u00a0solution.”
\n‘ The Californian offered
\nhis remarks during house
\ndiscussion of the congres-
\nsional budget for the next
\nthree years. To shed light
\non inflation causes, he
\nquoted this revealing pas-
\nsage from a speech by
\nArthur Bums, banker and
\nformer Federal Reserve
\nBoard chairman, given last
\nSeptember at Belgrade:
\n“Viewed in the abstract,
\nthe Federal Reserve
\nSystem had the power to
\nabort the inflation at its in-
\ncipient stage 15 years ago
\nor at any later point, and it
\nhas the power to end it to-
\nday. –
\n“At any time within the
\nperiod, it could have
\nrestricted the money supp-
\nly and created sufficient
\nstrains in financial and in-
\ndustrial markets to ter-
\nminate inflation with little
\ndelay.
\n“It did not do so because
\nthe Federal Reserve was
\nitself caught up in the
\nphilosophic and political
\ncurrents that were tran-
\nsforming American life
\nand culture.”
\nDannemeyer quoted
\nBurns further: “The
\nEmployment Act
\nprescribes that ‘-‘it is the
\ncontinuing policy and
\nresponsibility of the
\nfederal government to
\nutilize all its plans, func-
\ntions, and resources to
\npromote maximum
\nemployment.”
\n“The Federal Reserve is
\nsubject to this provision of
\nlaw and that has limited its
\npractical scope for restric-
\ntive actions -f quite apart
\nfrom the fact that some
\nmembers of the Federal
\nReserve family had
\nthemselves been touched
\nby the allurements of the
\nnew economics.
\n“Every time the govern-
\nment moved to enlarge the
\nflow of benefits to the pop-
\nulation at large or to this or
\nto that group, the assump-
\ntion was implicit that
\nmonetary policy would
\nsomehow accommodate
\nthe action.”
\nIn other words, Dan-
\nnemeyer concluded, when
\nCongress voted the ap-
\npropriation to advance
\nsome interest or cause,
\nthere was an implicit un-
\nderstanding that the
\n. Federal Reserve would ac-
\ncommodate the money sup-
\nply to finance it. “And that
\nis precisely what hap-
\npened. We have met the
\nenemy, and it is us – this
\ninstitution …”
\nApplying his remarks to
\nmodern-day economics,
\nDannemeyer asserted that
\nduring the past three and a
\nhalf years, “spending by
\nthis Congress has in-
\ncreased by 55 percent.
\nTaxes during the span from
\n1977-81 have risen by 7H
\npercent, and the inflation
\nrate during that same
\nperiod has been 42
\npercent.”
\nThe California lawmaker
\ngave Congress and the
\ncountry something to think
\nabout in his research and
\ncomments, Undoubtedly
\nthere are other sides to the
\nissue. But the combination
\nof the Burns statement and
\nthe Dannemeyer statistics
\nshould not be brushed off
\nwithout thorough con-
\nsideration.<\/p>\n","protected":false},"excerpt":{"rendered":"

What really is the basic\u00a0cause of inflation?\u00a0Even this far into the frustrating fight against\u00a0crippling inflation, many\u00a0Americans – extending to\u00a0such high places as\u00a0Congress – continue to ponder the question.\u00a0And, as Rep. William E.\u00a0Dannemeyer, R-Calif.,\u00a0noted in a recent house\u00a0speech, “Until we agree on what that cause is we cannot begin to deal with the\u00a0solution.” ‘ The Californian… Continue reading ‘Fed’ Helps Feed lnflation<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[],"_links":{"self":[{"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=\/wp\/v2\/posts\/668"}],"collection":[{"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=668"}],"version-history":[{"count":0,"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=\/wp\/v2\/posts\/668\/revisions"}],"wp:attachment":[{"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gashler.com\/nlc\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}