In fact, the Fed was established as a result of the Panic of 1907 and the discount mechanism and rate were the only toolsofmonetarypolicy given to the Fed in the Federal Reserve Act.
Winmill points at the debt ceiling debate as one of the factors helping to push the price of gold higher, recognizing that along with ultra-loose monetarypolicy, the government is running out oftools to bring down unemployment rates that have crept past 9%.
