The Fed

In Krugman's world, prosperity is created by spending, and it does not matter who spends what on whom just as long as someone is spending.

The Fed is a racket at heart, a con game writ large — what else can you call an organization with the exclusive privilege of printing money in the

Any audit that exposes the Fed's relationship to the state will be worth doing, even if the Fed's friends keep it where it is.

Remember the flight to "safety" into T-bills and T-bonds? Most people fled from hard assets. These are the victims. They believed the propaganda of the establishment.

As things stand, central banks' monetizing government debt is presumably the way forward for producing inflation — which is, and must be, defined as a rise in the money stock.

The entrepreneur takes calculated risks, and typically "builds" using the carpenter's rule: measure twice, cut once. If it does not make financial sense to build, the entrepreneur will not do so. In addition, the entrepreneur would later know — through the profit-and-loss mechanism — whether such a decision was prudent or foolish.

Artificial credit created by a deceptively low rate of interest leads to speculative bubbles.

Remove all government impediments to effective entrepreneurial planning: avoid protectionist measures internationally; allow prices and wages to adjust as needed to restore market equilibrium. Not only cut tax rates, as was done in the incomplete reforms of the 1980s and early in this century, but, per Rothbard, drastically reduce the government budget, both taxes and expenditures.

Krugman. 2002. Calling for a housing bubble.

True prosperity did not return until "the federal government relinquished its stranglehold on the American economy."