Q: Why has the FED been ineffective in helping the US economy following the credit/bank debacle in 2008?
A: Because the FED is made up of kind-of-old fellows who take their main education from the agricultural society in the US 1930's, a full decade prior to WWII.
Q: Why is 1930 different in basics from today in 2011?
A: Because in 1930, the US didn't depend on middle-east oil, on factories in Asia, or on the European marketplace. Also, there were no supercomputers, satellites, internet (or even cell phones) in 1930 to keep the WW marketplace 100% consolidated real-time as it is today.
Q: You mean the axioms are completely different and the FED doesn't understand?
A: Most definitely yes.
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Economics is overwhelmingly a SOCIAL STUDY. It's about behavior. The FED has no clue.
As always, ignore all rhetoric and focus only on results. "No results" = "no clue."
Think about it yourself. The US FED has a number of geographical "regions" within the US. Huh? That made sense when you needed to travel from one region to the other by covered wagon. Today? Hello? No clue.
