The Fed

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."

We must unmask the fact that they use the Federal Reserve to dupe the masses into supporting imperialism. The Fed must be stopped. Gold coins must return as our monetary standard. The ideas of the Austrian economists must prevail.

Contrary to popular way of thinking, the threat to US economy is not the high level of debt as such but credit that is not backed up by real savings. Also, the fall in the money stock that precedes price deflation and an economic slump is actually triggered by the previous loose monetary policies of the central bank and not the liquidation of debt.

My disagreement with Ms. Baum regarding central banking is at base a disagreement about what exactly is money and credit.