The Murdoch Bloomberg Lift
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Could Rupert Murdoch and Michael Bloomberg provide the lift that enables Congress to pass the Centennial Monetary Commission Act and take a strategic look at the Federal Reserve as it begins its second century? That’s the question that comes to mind in the wake of their statements in respect of how it is the central bank that has been behind the widening of the wealth gap. If they are onto this issue, can the savviest of the Republican candidates be far behind?
We were alerted to this by Ira Stoll’s FutureofCapitalism.com, which reported that Mr. Murdoch has sent out two tweets on this head. One responded to a comment wondering how the rich got richer. “Easy,” the proprietor of the Wall Street Journal and Fox news shot back, “Fed printed trillions but regulations scared big and small from investing. Ended in W St.” Mr. Murdoch followed with another Tweet: “Actually Fed trillions ended inflating existing assets. Stocks, real estate, art. Is it a bubble?”
Mr. Murdoch’s tweets followed an interview that Mayor Bloomberg, now in private life, gave to his television channel, warning of how the Fed’s zero interest rate policy is, as Future of Capitalism put it, contributing to inequality. There is, Mr. Bloomberg averred, “no question that “low interest rates have exacerbated the wealth gap between the poor and the rich because the rich have assets. And that is what is being hiked here because of low interest rates, whether they own stocks or real estate or whatever.”
It’s a long way to the gold standard from the remarks of Messrs. Murdoch and Bloomberg. But they are not so far away from the debate in Congress over monetary reform — and over the Centennial Monetary Commission to take a strategic look at the Federal Reserve as it begins its second century of operations. That measure has been sent to the floor of the House by the Committee on Financial Services. What a help it would be were Mr. Bloomberg or Mr. Murdoch to endorse the measure.
Not to mention the Republican candidates. Several of them have made clear in private conversation that they are sympathetic to the cause of honest money and the sound dollar. But it is a hard issue to get ahold of when inflation is not showing up in the Consumer Price Index or in the price of gold. Instead we have this phenomenon of asset inflation, with high prices of stocks and luxury real estate. It creates an illusion of prosperity that isn’t widely felt and a sense of inequality that is widely felt.
Our own view, oft-expressed here, is that this is the issue of the hour. “The position of the Sun,” we have written, “is that there are three circumstances when it makes sense to move to a system of sound money. One is when a currency is collapsing. Two is when it is steady. And three is when it is appreciating. What one really wants, at any point, is the confidence that the dollar will remain exchangeable for gold over a long period and that people will have confidence in that.” Nice to see Messrs. Bloomberg and Murdoch moving in that direction.