Like Orwell‘s famous statement from Animal Farm, “All animals are equal, but some animals are more equal than others,” it turns out that bank bailouts are not as equal as the state would like us to believe. Unsurprisingly, benefits accrue to the banks with the biggest depositors.
The Fed lowers interest rates ostensibly to “stimulate” the economy. But while the Fed claims it is strengthening the economy, it actually weakens it through its easy-money policies.
In What Has Government Done to Our Money? Murray Rothbard changes your whole view of the world—not just money.
The First World War was critical to boosting the influence of that child of progressivism and Wall Street corporatism: the Federal Reserve System.
Can an increase in the supply of gold cause a boom-bust cycle? Mises believed it was theoretically possible but highly unlikely. Rothbard, on the other hand, said as long as gold is money and there is no fiduciary media, such a scenario was not possible.
Commercial real estate in the US faces major problems despite efforts by the Federal Reserve System to prop it up. Bonds used to finance commercial real estate markets are being hit especially hard, and there is no relief in sight.
We have reached this point: the government keepers of money do not even understand what money is or why inflation is harmful. To them, the real threat to the economy is “deflation.”
Federal oversight of each recycled metal transaction would be an intrusion into the daily life of the individual and business on an unseen scale.
A common belief among economists is that the central bank determines what interest rates should be. But is that accurate? Indeed, there is more to the story.
Contra Marx, the laws of economics are immutable and are the same no matter what historical epoch exists. Economies cannot flourish unless market prices, private property rights, and profits and losses are unhampered.
