To Mises, freezing money supply did not represent, per se, a desirable money system, even though the consequences derived from it would make such a system appear more in line with a free market economy than the current system of relentless increase in credit and fiat money supply, controlled by the government.
There is no debate that inflation is always and everywhere a monetary phenomenon. With the Fed's policy of deliberately manufacturing inflation we are playing with fire.
In other words, in seeking to boost sales by exploiting the possibilities of modern finance (in a perfectly legal manner), GMAC and Ford Motor Credit, GE and John Deere (among countless others) may have misled our preening, erstwhile Maestro into financing the whole wasteful bubble of the late 1990s!
Monetary central planning, as perpetrated by the Federal Reserve, provides the key to hollowing out and creating a pro-statist populace.
In 1913, economics and liberty collided when the Federal Reserve Bank was created, the 15th Amendment created the income tax, and the 17th Amendment instituted direct election of Senators.
Thorsten Polleit warns that one should not get carried away by wide spread euphoria.
Poor Alan Greenspan — ex Ruler of Rates. Once he stood before masses of moneymen who dare not cough lest they miss a word, an inflection even.
