The Fed

What permits real economic growth is an improvement in the investment infrastructure of the production process. What makes the improvement possible is real savings.

Instead of trying to abolish failure via bailouts, we should let markets work, let failure run its course, and be so much the wiser for it.

Obama's head is filled with myths and lies, not only about FDR and the New Deal but also about the government's power to repair the existing economic problems. With this model in his head, he can only do evil. This must change.

Credit expansion is what creates a delusion of prosperity while it lasts and economic depression when it ends. It is all that needs to be stopped to end the boom-bust cycle.

Presented as part of the Mises Institute’s Brown Bag Seminar series on April 23, 1997 in Auburn, Alabama.

Although the dollar is no longer tied to gold, that will not stop the dollar price of gold from exploding when more investors realize that no one, not even a sharp guy like Ben Bernanke, ought to hold the fate of the world's economy in his hands.

Only two things can save the Fed at this point. One is a bailout by the federal government. This recapitalization could be financed by taxes or by monetizing government debt in another blow to the value of the currency.

I am confident that the above would make a heck of a lot more sense than letting blind heroin addicts borrow an extra trillion dollars to "stimulate" the economy.

Robert Higgs, author of Depression, War, and Cold War, explains the economics of inflation in light of historical experience.