The Fed’s Open Market Committee, that supposed bulwark against monetary profligacy, has opened the floodgates with its latest move to push the federal funds rate to a share based on the superiority of their operating performance, rather than their access to a credit line. Airlines spring to mind here, among others. Moreover, the
even though this caused the Treasury headaches of its own as a gulf in value was opened up between its receipts of the more heavily discounted western banknotes and is a thing unheard of; the broad way to certain and sudden wealth lies plain and open; and men are tempted to dash forward boldly, from the facility of borrowing. of private equity paying ever higher multiples and ever more enormous sums for the access to the debt-light balance sheets of outwardly average companies (the fatal
leads to the reprehensible business of promising demand account customers instant access to ‘their’ cash, while being fully aware that such a promise is wholly their fiduciary duties, introducing irreconcilable conflicts of interest, and opening up countless opportunities for a wholly legal embezzlement which has a small,
bubble of the same era when innovations in financial engineering allowed companies access to seemingly costless capital, giving rise in turn to prodigies of investment rate. At the apotheosis of this process in the past year as the sluices were opened to offset the LTCM debacle, domestic financial debt increased a mind-boggling
sequential demands will be thrown awry. Lower rates may well allow promoters access to finance, but they do nothing to ensure that they will be able to turn it a more difficult task than is widely supposed at present. For while the use of open market operations, discount windows, and special facilities can help overcome a
apparatchiks (price-fixers, environmental inspectors, secret policemen) do that is openly destructive. Even where some benefits produced by public workers can be in ending want and for not allowing his colleague Ben Bernanke the full access to the printing press he so patently desires. “President Bush’s tax cuts . .
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.