Money and Banks

When I received this book, I turned first to the contribution of Murray N. Rothbard, "The Gold Exchange Standard in the Interwar Years." 

Having the central bank manage interest rates is central planning at its worst.

How capitalism came to mean big profits but not big losses. 

A world central bank and currency can only further destabilize the global economy. 

 Half of U.S. currency is held overseas. What happens if (when?) it is repatriated?

As the "experts" counsel Japan to gun the money supply, an Austrian has a better idea.

If the stock market crashes, will the Fed flood the economy with money?

Winter's economic crisis in Asia was blamed on "go-go capitalism" and "crony capitalism," but those explanations don't get to the root cause. The Asian meltdown stems from structural defects deep within the world monetary system itself. These are defects that no amount of bailouts, exchange controls, IMF power, or even U.S. monetary discipline can repair.

My Latin professor once taught me the golden rule of Roman emperors, Vulgus vult decipi, ergo decipiatur. It means the masses want to be cheated, so let's cheat them. Machiavelli built his theory of government partially on this credo.

The Federal Reserve is the most powerful yet least questioned of all Washington institutions. It can make or break elections, bail out entire governments, send the stock market to the stratosphere, or bankrupt whole industries. Yet it operates with less oversight than the CIA.