In addressing the Fed, it seems that Hillary Clinton and Bernie Sanders have found common ground: the biggest problem with the Fed is simply the demographic makeup of central bank officials. Of course, as Jonathan Newman notes, the low interest rate policies both Clinton and Sanders advocate are directly responsible for hindering the various communities the two want to see better represented within the halls of the Fed. But this absurd logic is what we have come to expect from our well-paid “public servants.”
On Mises Weekends this week, we have an interview Jeff did recently with our friends at Power Trading Radio. Jeff dissects the inherent absurdity of negative interest before diving into a topic that Guido Hülsmann has written a great deal about, the moral and societal consequences of easy money. Jeff touches on how the Fed’s manipulation of interest rates has a very real impact on the time preferences of normal Americans, incentivizing them to spend more now at the expense of future savings — and the moral hazard that comes with it.
Just one of the many reasons Ludwig von Mises wrote passionately in defense of sound money, attributing it directly to “the triumphal unprecedented progress of Western liberalism ready to unite all nations into a community of free nations peacefully cooperating with one another.”
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