With the US housing crisis metamorphosing into a full-blown financial crisis in the United States and Europe and the specter of a global stagflation looming larger every day, the Fed's credibility and reputation is evaporating with the value of the US dollar.
Some investors have come to believe that, whatever mistake they make, they have a right to their profits, and the authorities will enforce it. The rescue of Bear Stearns, the two GSEs and AIG will only fuel this belief.
It is a sign, rather, that we have allowed our monetary, fiscal, and regulatory authorities to lure us like lambs to the slaughter to the unwarranted socialization of the most important sector of the capitalist system.
We agree that charity is a virtue, but sometimes well-intentioned plans have undesirable consequences or fail to live up to their potential because they change people's incentives.
William Tucker says nuclear power is the most concentrated energy and is the cure for the nation's energy ills. And in his view there is no such thing as nuclear waste — it all is recyclable.
At the root of the problem are not mortgage-backed assets as such but the Fed's boom-bust policies.
The core issue is that there is nothing to restrain money creation.
My methods can be replicated. I hope to encourage others to take up the challenge — including the next generation of persons willing to aid the cause of liberty by going behind enemy lines.
As more individuals like Yoani Sanchez and Ron Paul emerge by means of the Internet, the inevitable long-term result will be a freer, happier, more prosperous world.
As long as governments and central banks continue to focus on the monetary symptoms of the "secondary depression" and continue to ignore the structural aspects of the "primary depression," they act like quacks.
