Saturday, September 14, 2013

Why Academic, Money-Printing, Central Bankers Will Not Change Course

Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession  (McGraw-Hill, 2009) and "The Coming Collapse of the Municipal Bond Market" (, 2009)

            The Federal Reserve may sell a bond or two in the coming months, but Ben or Jan or Big Lar can be trusted to inflate. The professors know no other course:

Johann Peter Eckermann's conversation with Goethe, February 1, 1827:

"We talked about the professors who, after they had found a better theory, still [ignored it: a very loose consolidation - FJS] 'This is not to be wondered at,' said Goethe; 'such people continue in error because they are indebted to it for their existence. They would have to learn everything over again, and that would be very inconvenient.' 'But, said I, 'how can their experiments prove the truth when the basis for their evaluation is false?' 'They do not prove the truth,' said Goethe, 'nor is such the intention; the only point with these professors is to prove their own opinion. On this account, they conceal all experiments that would reveal the truth and show their doctrine untenable. Then the scholars - what do they care for truth? They, like the rest, are perfectly satisfied if they can prate away empirically; that is the whole matter.'"

- Conversations of Goethe with Eckermann