Tennesseefree.com

Finally, somebody is calling on the Fed to strengthen the dollar.

When Federal Reserve governors meet today, they should consider that solutions to their twin challenges – a flagging economy and systemic moral hazard in financial markets – have common roots in a stable dollar. One of the primordial lessons of economic history is that sound money is a necessary condition to promote long-run prosperity and maximal growth. Moreover, a stable currency and low inflation lessen the need for complex hedging vehicles which can be leveraged to harmful effect in volatile markets.

Will Bernanke and the spineless Fed have the political will (even though they are supposed to be non-political) to stop this easy money nonsense, tank the US economy, and begin raising the Federal Funds Rate? I doubt it. I wish I could be more optimistic, but Bernanke has proven himself to be a disgrace.

Bring back Paul Volcker.