In a remarkable show of both contempt and hubris, the Federal Reserve System announced that it will be celebrating its 100th birthday at exactly the same place where it secretly started, in Jekyll Island, Georgia.

The incessant and never-ending drumbeat of bad news about the economy was deftly summarized here, which concluded that 16 new records had been set over the past 12 months, “and they are all bad.”

One day after the Federal Reserve Bank's “Federal Open Market Committee” (FOMC) announced it would create an additional $600 billion in currency over the next eight months, commodities markets skyrocketed as investors frantically sought hedges against the coming inflation. The Federal Reserve Bank, staffed with Keynesian and a few Monetarist school economists, calls the move “quantitative easing.”

Central planning seldom makes economic sense. However good a scheme looks on paper in some politician’s office, planned on the taxpayer’s dime, it's probably not worthwhile. If it really was a good scheme, then private enterprise would have already implemented the project.

Government never “stimulates” economic growth. Left quite alone, people engage in rational commerce guided only by enlightened self-interest. More crucially, government cannot predict the real consequences of its efforts to stimulate the economy. Republicans around the country are telling Americans that the ocean of dollars which the federal government spent on the future credit of our children in order to stimulate growth in America is actually being spent in China.