Wednesday, October 15, 2008

The Austrians were right

"The most important institutions in human society
-- language, law, money, and markets -- all
developed spontaneously, without central
direction." --David Boaz
One does not take over free markets to save them. It was and still is government intervention in the first place that is destroying the free markets. The root cause of the mess we are in is fractional reserve lending, an unsound currency, and interest rate micro-mismanagement by the Fed.

In a free market, there would not be a Fed, nor would there be fractional reserve lending, nor would there be unsound currencies. And instead of attacking the root cause of the mess, Bush, Paulson, Bernanke, and others are responding with measures that lead one further down the path of fascism, supposedly to "preserve the system".

Also sad is the fact that highly respected economic professors like Krugman and Roubini openly cheer such nonsense. There is very little if anything in these bailout measures that is worth cheering over. Indeed, there may not be anything left worth preserving if we continue down this foolish path we are on for too much longer.

The actions taken by Central Bankers to "preserve the system" are tantamount to cutting off one's head so that it won't get any more blemishes.
"In politics stupidity is not a handicap." -- Napoleon Bonaparte

What can I say that hasn't been said before.