Washington Metro Objectivism Discussion (WMOD) September 20, 1995 Meeting "The Fed, Alan Greenspan, and Objectivism" The Wednesday September 20 meeting of WMOD will feature a talk by banking expert Bert Ely. The talk will explain why, contrary to almost universal belief, the Federal Reserve System has almost no real power today over inflation and interest rates, and why that is a good thing. Instead, the Fed's influence over the economy grows solely from the perception that it has that power. This situation is reminiscent of the Wizard's power in "The Wizard of Oz," which was exposed as a sham when Toto pulled back the curtain to reveal the Wizard's true nature. In particular, Bert will explore why self-interest within the media and the financial markets preserves the perception of the Fed's power. This power has given Fed chairman Alan Greenspan an aura of omniscience that is inflated by his obfuscations. How could Greenspan, once a member of Ayn Rand's inner circle, become, like all central bankers, an archetypal central planner? Is Greenspan an Objectivist gone bad, or can his position be reconciled with Rand's ideas? Internet users will find a paper by Mr. Ely: "The Fed: America's Toothless Tiger" and a shorter article "The Fed Is A Toothless Tiger, as the Markets are Learning," at http://www.cais.com/ely. A further understanding of the perception of the Fed's power can be gained by viewing that great monetary epic cleverly disguised as a children's movie: "The Wizard of Oz", or by reading the book on which it is based, L. Frank Baum's "The Wonderful Wizard of Oz." Bert Ely is a financial institutions consultant specializing in deposit insurance and banking structure issues. He is the principal in Ely & Company in Alexandria, Virginia. Mr. Ely was one of the first to publicly predict, in 1986, a taxpayer bailout of the FSLIC, the S&L industry's deposit insurance fund. In 1991, he accurately predicted the non-crisis in America's banks and in 1992 the forthcoming taxpayer bailout of the Japanese banking system. Mr. Ely developed, and has helped transform into comprehensive legislation, the "cross-guarantee" concept for privatizing banking regulation and its attendant deposit insurance and systemic risks. When and Where? Join us for dinner on Wednesday 9/20 at 7 pm and/or for the talk at 8:15 pm at the Fortune Chinese Restaurant at Baileys Xroads, VA on Route 7 between 7 Corners and Columbia Pike (5900 Leesburg Pike 703/998-8888). You can take METRO to the West Falls Church stop and then take METRO buses 29A or 29B East on Route 7 toward Baileys Xroads. The Fortune is on this route. After the meeting we can give you a ride back to a METRO station. WMOD has arranged for a $15 fixed price dinner (including tax and tip). Or you can order from the menu. Please RSVP to WMOD before noon the day of the dinner and talk so that we can tell the restaurant how many tables to set up. To keep informed about WMOD and related activities, send your email address and/or snail mail address to: +----------------------+-----------------------------+ |Dave Saum |Email : DSaum at infiltec.com | |Infiltec |Tel : 703/820-7696 | |PO Box 8007 |Fax : 703/671-9350 | |Falls Church, VA 22041|"Sapere aude" (dare to know) | +----------------------+-----------------------------+
Return to the WMOD home page.