Politicians espouse numerous theories about the cause of this country’s economic woes; seldom however do these officials look below the surface: the roots of our economic ills can be traced to central banking and our present monetary system.
The Federal Reserve claims to manage our money; instead it makes our money worth less and less every day. It has generated continuous and worsening business cycles and lowered our living standards.
According to Bernanke there is good evidence that cash that goes to low- and moderate-income individuals is more likely to be spent in the near term -- hence, from this perspective, it is going to be beneficial for economic growth.
Only if the amount of money in the economy increases, all other things being equal, spending in money terms will follow suit. However, the spending increase in this case is not on account of some multiplier but because of the increase in the money supply.In the March edition of Portfolio, John Cassidy details how the federal government (and taxpayers) essentially bailed out and nationalized much of the banking sector over the past 6 months.
In my previous post, “A Word to Environmentalists,” I wrote “[t]he first step you need to take is to stop using the same word `environmentalist’ to describe both them [advocates of mass destruction and death] and you. So long as you do use the same word, people cannot help but think of you all in the same terms.”
In reply, a respected colleague of mine at the Mises Summer University, wrote the following:
