Reserve Quotes - page 3
The proof of the pudding is in the eating. There was a widespread myth of the 1970s, a myth along Tom Kuhn's (1962) Structure of Scientific Revolutions lines. The Keynesianism, which worked so well in Camelot and brought forth a long epoch of price-level stability with good Q growth and nearly full employment, gave way to a new and quite different macro view after 1966. A new paradigm, monistic monetarism, so the tale narrates, gave a better fit. And therefore King Keynes lost self esteem and public esteem. The King is dead. Long live King Milton!
Contemplate the true facts. Examine 10 prominent best forecasting models 1950 to 1980: Wharton, Townsend–Greenspan, Michigan Model, St. Louis Reserve Bank, Citibank Economic Department under Walter Wriston's choice of Lief Olson, et cetera. ... M did matter as for almost everyone. But never did M alone matter systemically, as post-1950 Friedman monetarism professed.
Paul Samuelson
I did say in print, in February, 1929 that there was no hope for economic recovery in Europe before American interest rates came down. That wouldn't be until the American boom collapsed - which was likely to happen within the next few months.And this did, in fact, happen in October 1929.
What made me expect this, of course, was one of my main theoretical beliefs - that an inflationary boom cannot be maintained indefinitely. I was sure that a very unstable situation was created by the artificial prolongation of the boom in 1927, when the Federal Reserve tried to stave off a collapse by credit expansion.
Friedrich Hayek
There is no doubt, and in this I agree with Milton Friedman, that once the Crash had occurred, the Federal Reserve System pursued a silly deflationary policy. I am not only against inflation but I am also against deflation! So, once again, a badly programmed monetary policy prolonged the depression! So, once again, a badly programmed monetary policy prolonged the depression. One consequence of this policy was, of course, the fact that confidence was destroyed.
Friedrich Hayek
While we were engaged in voting eulogies to Euodus, Severus restrained us by saying: "It is disgraceful that in one of your decrees there should be inscribed such a statement respecting a man that is a Caesarian." It was not the only instance of such an attitude, but he also refused to allow all the other imperial freedmen either to be insolent or to swagger; for this he was commended. The senate once, while chanting his praises, uttered without reserve no less a sentiment than this: "All do all things well since you rule well!"
Septimius Severus
The policies - determining who would be drafted and who would be deferred, who would serve and who would escape, who would die and who would live - were an antidemocratic disgrace ... I am angry that so many of the sons of the powerful and well placed ... managed to wangle slots in reserve and National Guard units. Of the many tragedies of Vietnam, this raw class discrimination strikes me as the most damaging to the ideal that all Americans are created equal and owe equal allegiance to their country.
Colin Powell
You can't have a government like this without an income tax, but we don't want a government like this. This is not the type of government that was designed by the founders of the country. This is not what was written in the Constitution. We've only had an income tax since 1913. But if you want a welfare state, and if you want to police the world and pay for the defense of Japan and Germany, give foreign aid to the Soviet Union. You not only need the income tax you need the Federal Reserve to print up the money when the deficit is accumulated. So we think that government should be smaller. If government is small, then you don't need the income tax.
Ron Paul
Question: If you could pick one cause that has gotten us here, what'd you say it is?
Ron Paul: Easy money. The Federal Reserve artificially lowering interest rates, deceiving the people, the investors, the savers, into believing that there's a lot of savings out there, and that we should invest more, build more houses, more cars. It's the malinvestment, which is every bit as dangerous, from the inflation of the money supply, as is the high prices that usually come.
Ron Paul
The growth in money and credit has outpaced both savings and economic growth. These inflationary pressures have been concentrated in asset prices, not consumer price inflation--keeping monetary policy too easy. This increase in asset prices has fueled domestic borrowing and spending. Government policy and the increase in securitization are largely responsible for this bubble. In addition to loose monetary policies by the Federal Reserve, government-sponsored enterprises Fannie Mae and Freddie Mac have contributed to the problem. The fourfold increases in their balance sheets from 1997 to 1998 boosted new home borrowings to more than $1.5 trillion in 1998, two-thirds of which were refinances which put an extra $15,000 in the pockets of consumers on average--and reduce risk for individual institutions while increasing risk for the system as a whole.
Ron Paul
It's not a country – it's a world. It's impossible to see the limits.. .It's only in Russia that I had a similar impression, but it wasn't the same thing. In America you are confronted with a power in movement with force in reserve without end. An unbelievable vitality - a perpetual movement.
Fernand Léger
This it is that gives a majesty so pure and touching to the historic figure of Christ; self-abandonment to God, uttermost surrender, without reserve or stipulation, to the guidance of the Holy Spirit from the Soul of souls; pause in no darkness, hesitation in no perplexity, recoil in no extremity of anguish; but a gentle unfaltering hold of the invisible Hand, of the Only Holy and All Good; - these are the features that have made Jesus of Nazareth the dearest and most sacred image to the heart of so many ages.
James Martineau
Life is a hideous thing, and from the background behind what we know of it peer daemoniacal hints of truth which make it sometimes a thousandfold more hideous. Science, already oppressive with its shocking revelations, will perhaps be the ultimate exterminator of our human species - if separate species we be - for its reserve of unguessed horrors could never be borne by mortal brains if loosed upon the world.
H. P. Lovecraft
Having discovered the true principle, I then derived all the laws that govern the motion of light, those concerning its direct propagation, its reflection and its refraction. I reserve for particular members of our Assembly the geometrical demonstration of my theory.
I know the distaste that many mathematicians have for final causes applied to physics, a distaste that I share up to some point. I admit, it is risky to introduce such elements; their use is dangerous, as shown by the errors made by Fermat and Leibniz in following them. Nevertheless, it is perhaps not the principle that is dangerous, but rather the hastiness in taking as a basic principle that which is merely a consequence of a basic principle.
Pierre Louis Maupertuis
This view that the action of the Federal Reserve authorities in 1927 was responsible for the speculation and collapse which followed has never been seriously shaken. There are reasons why it is attractive. It is simple, and it exonerates both the American people and the economic system from substantial blame... Yet the explanation obviously assumes that people will always speculate if only they can get the money to finance it. Nothing could be farther from the case. There were times before and there has been long periods since when credit was plentiful and cheap -- far cheaper than in 1927-29 -- and when speculation was negligible. Nor was speculation out of control after 1927, except that it was beyond the reach of men who did not want in the least to control it. The explanation is a tribute only to a recurrent preference, in economic matters, for formidable nonsense.
John Kenneth Galbraith
And after they have started the action will always look, as it did to the frightened men in the Federal Reserve Board in February 1929, like a decision in favor of immediate as against ultimate death. As we have seen, the immediate death not only has the disadvantage of being immediate but of identifying the executioner.
John Kenneth Galbraith
