Mitchell sent a message to Abigail Johnson – President and Chief Executive Officer of Fidelity Investments and Chairman of Fidelity Worldwide Investment email address that said:
Dear Ms. Johnson,
A writer I follow closely on Facebook posted the following: "Greenspan avoids directly answering questions about a potential recession, or the busting of another bubble, but speaks extensively about the greater long-term ...risks posed by the growth of entitlements, and a lack of person savings and capital investment. Ironically Greenspan neglects to point out that the main reason government has failed to curtail its borrowing and spending, and that individuals save so little, is the Fed. Without the Fed's artificial suppression of interest rates and QE programs, the government would have been forced to reduce both spending and borrowing long ago, and individuals would have had greater incentives to save. But the Fed enables the government to avoid the difficult political decisions Greenspan claims need to be made. He blames the politicians for their lack of courage, but says nothing about the Fed's cowardliness, or his own failures. If you read the letters Greenspan wrote me in 1987, he has been hoping the government would tackle the entitlement problem for 30 years, while simultaneously pursing a monetary policy that guaranteed they would not!"
How do you respond to his opinion?
Do you feel that the Federal Reserve should be abolished?
Do you feel that the Federal Reserve should be extended to have at least some control over fiscal policy?
Do you feel that professional economists should control fiscal policy in some other manner?
Thanks for your attention, and stay well!
- Mitch
