Abuse of the GDP equation leads economists and pundits to blame savings and praise reckless consumption, to hate imports and love exports, and (in principle) to attribute a doubling in the flow of goods coming out of factories to a nonchange in the level of a nonexistent stock of inventory.
Presented by Ron Paul at the “Birth and Death of the Fed” conference at Jekyll Island, Georgia, 27 Febuary 2010.
Recorded at Jekyll Island, Georgia; 27 February 2010.
Recorded at Jekyll Island, Georgia; 27 February 2010.
Not all reforms are improvements. As we have seen, the 100-percent-reserve solution is ripe with unintended consequences.
Our analysis holds that the key reason for financial instability is not the repeal of the Glass-Steagall Act as such but the existence of the central bank.
"Market prices can get screwed up when the Fed tinkers with interest rates. Because of the distorted price signals, the actual real resources are invested improperly."
What we need is something else: the establishment of a different kind of monetary system, one that uses competitive markets in the area of money and banking, and that eliminates the currency monopoly of the state.
