The Fed

Investments pay you money every month. Homes are just the opposite – money pits.

Mises said that such a monetary policy would ultimately end in the destruction of the exchange value of money.

Inflation, in case we've forgotten, is robbery by another name.

The rate cut today is a good reminder that the Fed can’t always get its way.

In conclusion, inflation wreaks havoc on the structure of capital. It does so not only through the intertemporal misallocation of resources that takes place when the interest rate no longer reflects the social rate of time preference, but inflation also wrecks the existing structure of capital by introducing unpredictability into entrepreneurs' plans that rest on predictable exchange rates.

Here's what I would like to see: the whole of Wall Street rising up against the Fed and demanding that it turn off the spigots and let the economy get back on an even keel. Let the correction happen and let profits and wages fall in the overblown sectors.

Contrary to Minsky, our analysis shows that it is the existence of the central bank that makes modern capitalism unstable.

Needless to say, during the course of this history, the federal government took more and more monetary powers so that, today, our monetary arrangements would be unrecognizable to any of the Founders. Our coins, in particular, are ugly little pieces of nothing and a constant reminder of our degradation.

The Fed's likely continuation of its inflation in an attempt to solve the problems created by its previous inflation and the consequence that this will drive down the value of the dollar on foreign exchange markets will provide momentum for the commodity-price boom for some time.