In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review April 17, 2011/ 13 Nissan, 5771

A conservative populist leaves the Fed

By George Will

http://www.JewishWorldReview.com | The morning Tom Hoenig, president of the Federal Reserve's regional bank here, announced that he would retire Oct. 1, newspapers nationwide reported that henceforth the Fed's chairmen will hold quarterly news conferences. This is probably both regrettable and inevitable.

The Fed is called "independent" because it was created to insulate monetary policy from political pressures. But it was created by Congress, which can do what it wants with the Fed. Also, for more than three decades the Fed has had a "dual mandate" — to protect the currency as a store of value (restraining inflation) and to promote "maximum employment." The latter inserts the Fed into inherently political calculations and decisions.

Furthermore, the Fed's current chairman, Ben Bernanke, speaks of the Fed's tasks of "economic management" and "economic engineering." (See his Sept. 24, 2010, speech at Princeton.) Such language, Hoenig says, is "the language of a central planner." If the central bank acts like this, it will face the scrutiny that comes with the political functions of consciously shaping society's allocation of wealth and opportunity. One of Hoenig's peers, Richard Fisher, president of the Federal Reserve Bank of Dallas, recently said:

"The liquidity tanks are full, if not brimming over. .?.?. What is needed now is for business to be incentivized to commit that liquidity to creating American jobs. This is the task of the fiscal authorities, not the Federal Reserve."


Every weekday NewsAndOpinion.com publishes what many in the media and Washington consider "must-reading". HUNDREDS of columnists and cartoonists regularly appear. Sign up for the daily update. It's free. Just click here.

Hoenig can see a liquidity-created bubble from where he sits. He sees farmland, the value of which is soaring throughout the Midwest for several reasons. One is that food prices are increasing rapidly because the Chinese, Indians, Brazilians and others in emerging markets are eating more calories and more of them in meat produced by turning cereals into animal feed.

But another reason is that extremely low interest rates and the rapid expansion of the money supply have caused lots of money to slosh around, seeking assets that will produce higher returns. The Fed's policy seems designed to pursue a very elastic interpretation of its mandate — to manipulate the stock market.

Since Bernanke's speech at Jackson Hole, Wyo., last August signaling another "quantitative easing" (printing another $600 billion), the Dow average is up more than 20 percent. In theory, with interest rates low and lots of liquidity, enough money will flow into equities to create a "wealth effect" stimulus: The expanding portfolios of the 20 percent of people who own 93 percent of equities will quicken their owners' animal spirits and acquisitiveness.

Does Hoenig think there will be a "QE3"? "It's not," he says, "out of the question."

He is proof that the phrase "conservative populist" is not quite an oxymoron: "One of the great tragedies of this era is that 'too big to fail' has been codified." He thinks that if something is too big to fail, it is too big to exist. He believes, as Milton Friedman said, that America has a profit and loss system — the possibility of profit is an incentive for risk, the possibility of loss is an incentive for prudence in the pursuit of profit. Because "too big to fail" short-circuits this, Hoenig favors restoration of "something like" the Glass-Steagall law — passed in 1933, repealed in 1999 — that separated commercial banking from the more risky investment banking. So he favors breaking up the largest banks: He says that the 20 biggest are, cumulatively, 20 percent larger than they were before the financial crisis.

Is it, he is asked, mere coincidence that the Great Depression was (a) America's longest slump and (b) the one combated by the most government activism? Hoenig answers: "There were a lot of government activities that caused people to hesitate."

Is it mere correlation, not causation, that the recession that ended in June 2009, although not the nation's most severe, has received the most ambitious government attempts at amelioration yet has been followed by the most sluggish recovery from a sharp contraction in modern times? Hoenig's answer is oblique but suggestive: Given uncertainties, including those created by government policies, investors "freeze up and pull back. When you don't know, you go still." He says, "Capitalism isn't a straight line, it's a zigzag, and when you introduce policies to eliminate the zigzag you can introduce instability."

Or stagnation. Or the faux dynamism created by a "buy now" spirit fueled by inflation expectations. They are inevitably unleashed by dramatic, protracted expansion of the money supply because confidence in fiat money eventually varies inversely with the quantity of such money.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

George Will's latest book is "With a Happy Eye but: America and the World, 1997-2002" to purchase a copy, click here. Comment on this column by clicking here.


© 2006 WPWG