The repo crisis — and it is a crisis — is telling us that liquidity providers are aware that the price of money, the assets used as collateral and the borrowers’ ability to repay are all artificially manipulated.
The so-called Founding Fathers used small-scale tax rebellions to justify their counter-revolution against the spirit of 1776, thus launching the big-tax, big-government Constitutional Convention of 1787.
Block and Barnett on whether the Hayekian triangle—the popular device used to illustrate how artificially low interest rates lead to an unsustainable boom—can be salvaged or should be abandoned altogether.
