Excerpt:Â Upward pressure on oil prices intensifies.Profligate spending at the Federal level, funded by the Federal Reserveâ€™s creation of money out of thin air, in excess of the underlying increase in production of real, useful goods and services, is destabilizing worldwide currency exchange rates. The dollar, since World War II, has by default been the world monetary standard. A responsible central bank in that circumstance has a duty to maintain a sound currency to prevent disruptions and dislocations in world commerce. The Federal Reserve has signally failed to fulfill that role.
The fault is not entirely the Fedâ€™s. It can be traced to the Employment Act of 1946, which enshrined John Maynard Keynesâ€™s socialistic economic doctrines as the official policy of the United States. The Fed was directed, among other missions, to manage the economy via currency manipulation in order to maintain full employment. Keynesian orthodoxy, which is the ideology of the Democratic Party, dictates that every economic glitch can be cured by increased Federal spending.