"..Germany’s harsh experience with runaway inflation after World War I should be remembered.
"When named president of the Kansas City Fed in 1991, (Thomas) Hoenig said his 85-year old neighbor gave him a 500,000 German mark note. The neighbor told him that, in 1921, the note would have bought a house. In 1923, it wouldn’t even buy a loaf of bread. The neighbor said, “I want you to have this note as a reminder. Your duty is to protect the value of the currency."
"That note is framed and hanging in my office," Thomas Hoenig CEO the the Kansas City Federal Reserve Bank as quoted by the Wall Street Journal.
Hoenig was the lone dissenter in the Jan 26-37 FOMC report that called for maintaining the Feds policy of artificially low interest rates for an undetermined period. Hoenig and many others believe this can lead to runaway inflation, destroying our currency, and our economy.
"We are all in the same boat on a stormy sea and
we owe each other a terrible loyalty." - G. K. Chesterson
