Thursday, October 27, 2016
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 

WCN Site Search

Preview the Paper Preview the Paper

Preview this week's Paper
A limited number of pages are displayed in this preview.
Preview this Week’s Issue ›
Subscribe Today ›

Lost & Found

Lost: Black Angus bull, C.R. 417 and C.R. 422 area, Stockdale. 210-241-1844.

VideoLost: White Poodle mix, F.M. 539 and Hwy. 87, Sutherland Springs area, needs medicine. Reward. Call 210-789-0118.
Thanks to the kindness of our neighbors we have located 3 of our missing calves. Still missing brown limousine calf yellow ear tag #39 in Stockdale off CR334 call 210-887-5442
More Lost & Found ads ›

Help Wanted

The 81st & 218th Judicial District Community Supervision and Corrections Department (Adult Probation) is currently seeking qualified applicants for the position of Community Supervision Officer. Requirements: Must have a Bachelor's degree recognized by the Texas Higher Education Coordinating Board and cannot be employed as a peace officer or work as a reserve or volunteer peace officer. Starting salary: $35,705.00 plus State benefits; Closing date: November 10, 2016; Procedure: Applicants should submit resume and copy of college transcript to: Renee Merten, Director, 1102 3rd Street, Floresville, TX 78114; or via email The 81st & 218th Judicial District Community Supervision and Corrections Department is also seeking qualified applicants for the position of Unit Manager for the Atascosa County office. Requirements: Must be a certified Community Supervision Officer in the State of Texas. At least five years of full time paid experience in the field of probation is preferred. Starting salary: Negotiable based on experience; Closing date: November 10, 2016; Procedure: Applicants should submit resume, references, and a copy of their CSO Certification to: Renee Merten, Director, 1102 3rd Street, Floresville, TX 78114; or via email
Although we make every effort to spot suspicious ads before they run, one may occasionally get into print. If that happens, we ask the consumer to call us ASAP so that we can take corrective action.
More Help Wanted ads ›

Featured Videos

Video Vault ›


Delete the Fed

E-Mail this Story to a Friend
Print this Story

The author of this entry is responsible for this content, which is not edited by the Wilson County News or
Sheldon Richman
August 20, 2013 | 2,098 views | Post a comment

Who should run the Federal Reserve System when chairman Ben Bernanke’s term expires next year: Vice Chair Janet Yellen or former Obama adviser Lawrence Summers?


Who then?

No one.

The fact is, we need the Federal Reserve like we need a hole in the head. Contrary to folklore, the Fed is not needed to stabilize the economy or to prevent unemployment. As the Fed heads into its second century, we ought to realize that its record is terrible. Even if we don’t count the 1920s (which some economists call the practice decade), America’s central bank is a flop. Monetary economists George A. Selgin, William D. Lastrapes, and Lawrence H. White wrote in “Has the Fed Been a Failure?”:
Drawing on a wide range of recent empirical research, we find the following: (1) The Fed’s full history (1914 to present) has been characterized by more rather than fewer symptoms of monetary and macroeconomic instability than the decades leading to the Fed’s establishment. (2) While the Fed’s performance has undoubtedly improved since World War II, even its postwar performance has not clearly surpassed that of its undoubtedly flawed predecessor, the National Banking system, before World War I.

The authors support that generalization with details. On inflation: “Far from achieving long-run price stability, [the Fed] has allowed the purchasing power of the U.S. dollar, which was hardly different on the eve of the Fed‘s creation from what it had been at the time of the dollar’s establishment as the official U.S. monetary unit, to fall dramatically” -- by 95 percent.

Selgin, Lastrapes, and White also show that the central bank has given us longer recessions and slower recoveries.

But without the Fed, who would set interest rates to guide the economy? The first answer is that government policy and Fed manipulations can create the very recessions that the Fed then tries to reverse. If the politicians and their court economists would get over their hubristic belief that they are stewards of the economy, macroeconomic crises would disappear.

Besides, the Fed cannot set interest rates, not even its narrow federal-funds rate for overnight interbank loans. At most, it targets that rate by buying and selling government securities, but it doesn’t always hit its target. The idea that the Fed can even heavily influence mortgage and other interest rates ignores important facts.

First, the Fed’s operations are small compared to the complex U.S. and world economies. Writes monetary economist Richard Timberlake,

Traditional economics properly teaches that many complex market forces -- countless investment and savings decisions not dependent on monetary factors -- are essential in determining interest rates. The Fed funds rate that Fed policy can influence through its monopoly over the quantity of money is inconsequential in shaping most short-term and long-term rates in capital markets, unless that moneymaking power subsequently promotes a pervasive price inflation. [Emphasis added.]

Second, the Fed can’t lower rates through monetary inflation beyond the very short run. Why not? Because lenders will respond by raising their rates to avoid being screwed by price inflation -- unless the Fed prevents the inflation, as it’s been doing, by effectively borrowing back the new money from the banks at interest.

Moreover, as monetary economist Jeffrey Rogers Hummel points out,
Globalization, with the corresponding relaxation of exchange controls in all major countries, allows [investors] easily to flee to foreign currencies, with the result that changes in central-bank policy are almost immediately priced by exchange rates and interest rates. Add to this the ability to purchase from many governments securities that are indexed to inflation, and it becomes highly unlikely investors will be caught off guard by anything less than sudden, catastrophic hyperinflation (defined as more than 50% per month) -- and maybe even not then.

While inflation is not the threat it once was, the Fed is not harmless. “Bernanke has so expanded the Fed’s discretionary actions beyond merely controlling the money stock that it has become a gigantic, financial central planner,” Hummel writes.

No one should have such power.

Money was not invented by government. It was the spontaneous creation of people trying to ease exchange in the marketplace. Central banks like the Fed only messed money up, robbing the people while facilitating warfare and welfare spending through irresponsible large-scale government borrowing.

Therefore, the Fed should be deleted.

Sheldon Richman is vice president and editor at The Future of Freedom Foundation in Fairfax, Va. (
‹ Previous Blog Entry

Your Opinions and Comments

Be the first to comment on this story!

You must be logged in to post a comment.

Not a subscriber?
Subscriber, but no password?
Forgot password?

Commentaries Archives

Commentaries page
Commentaries who represents me?
Heavenly Touch homeAllstate & McBride RealtyVoncille Bielefeld homeTriple R DC ExpertsFriesenhahn Custom Welding

  Copyright © 2007-2016 Wilson County News. All rights reserved. Web development by Drewa Designs.