The Fed

May this treatise stand as an example of how to fight for what is right even when everyone else is silent.

If history is any judge, financial meltdowns like what's happening in the subprime arena prompt the Federal Reserve to act in the only way it knows how. The Fed's playbook was written with its inception in 1913 and anointed by easy money cranks like Alan Greenspan and his successor in crime Ben Bernanke along the way.

We can thus conclude that it is irrelevant for the multiplier process whether the central bank targets the quantity of money or the interest rate. What matters here is that the central bank is always ready to accommodate commercial banks' expansion of credit out of thin air. Without the central bank's support the likelihood of a sustained multiplier process taking place is close to nil. Hence the notion of the money multiplier is not applicable to a truly free-market economy.

When I surfed into the Yahoo News web site Business section, I saw the

There is a definite connection between fiat currencies and trade deficits.

The "art of central banking" is the art of pretending to know what one does not know. Not only is it not a science; it is not even an art. At best it is alchemy; at worst it is a gigantic cheat.

The discrepancy between the relative position of the US economy in the world on the one hand and the relative position of the United States as to its military presence and the role of the US dollar on the other hand is moving towards a cracking point.

Unfortunately, this first essay failed to shine any light in the darkness because he is using advanced mathematics — econometrics — in an attempt to explain human beings.

He has chosen the wrong tool for the job.

After all, these intangible financial instruments can't be eaten or used to build a house, so what good are they? The present article seeks to answer just this question.

Perhaps most importantly, the very source of the crises would remain in place: the concept of "price index targeting," which rests on the erroneous "stabilization" idea, a concept that is in full contradiction to the notion of free markets: "Human action originates change. As far as there is human action there is no stability, but ceaseless alteration."