Monetary Theory

"As a response to the actions of the Bank of England, the Currency School proposed a simple, yet powerful limitation on the bank: a 100-percent reserve requirement on the issue of new bank notes."

"Through Fed monetary policy, the dollar is cheapened to produce an economy on steroids that eventually breaks down."

Rothbard shows that Gresham’s law was introduced not by Sir Thomas Gresham but by the “arrogant, boorish, and feisty” Sir Thomas

Bankers can spend their interest payments on real goods and services, thereby returning that money to the public, which can then use it again for further debt payments.

"Under deflation, it is those non–wealth generating activities that end up having the most difficulties in serving their debt, because these activities were never generating any real wealth and were really supported or funded, so to speak, by genuine wealth generators."

"Deflation is one of the great scarecrows of present day economic policy and monetary policy in particular,"

"The Rothbardians level an objection, saying the free bankers are ignoring an important real-world consideration; then Woolsey assumes away the problem and declares that he has met the Rothbardian objection."

Knowing that the Fed now holds the most toxic of the subprime assets the banking system could create during the roaring 2000s should leave us with some concern.

It doesn't make the country richer when politicians spend money they don't have.

"Contrary to Krugman and other commentators, we suggest that the best economic policy for the Fed and the government is to do nothing as soon as possible."