The Definition of Insanity...

zsignal — Wed, 19 Mar 2008 01:13:00 GMT

It was Albert Einstein who stated that the definition of insanity is "doing the same thing over and over again and expecting different results." After the FED's cutting of interest rates by three-quarters of a point today, those of us wary toward centralized banking and the socialization of money can only think: "Here we go again."

Austrian economists are often scoffed at for their a priorism, advocacy of laissez faire capitalism, and favor toward a gold standard; however, those hostile toward free markets and favoring state intervention are the ones who ought consider Einstein's words. It is the Austrian theory of the business cycle that predicted the demise of the tech bubble in the 90's as well as the current housing/mortgage fiasco (the blame for both can be placed at the feet of the state and the centralized bankers).

Injecting more credit into the economy will only at best send the economy into a sugar high (boom) driven by malinvestments, which will then result the bust to follow. We are not insane; those who have embraced statism and intervention are the ones keep "doing the same thing over and over again and expecting different results."

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The Definition of Insanity...