The Problem Is The Solution



Monetary and fiscal policy work perfectly in theory. On paper, Communism is by far the best economic system. On paper, a chain letter is a flawless business model. All of these ideas are flawed because, in terms of economics, people act in their own self interest no matter what.
Currently the Federal Reserve is “solving” the world’s economic predicament. Federal Reserve Chairman, Ben Bernanke is popularly assumed to be a brilliant economist. He is not near as smart as others in the financial sector who quickly learn to game Federal Reserve policy.
Where the U.S economy is concerned the “solution” is the problem. Relying on the Federal Reserve to right the economy over the years has caused a grossly inefficient allocation of resources that will be corrected one way or another. Loose monetary policy has allowed organized crime to infiltrate the financial sector and manipulate prices in all of the financial markets. Dishonest markets always collapse. U.S financial markets will not be an exeption.
Since its inception in 1913, the Federal Reserve has caused one economic problem after another. How can an organization that is staffed with some of the world’s most credentialed economists perform so miserably? The answer is rooted in an inconvenient fact that dooms all attempts at central economic planning to failure. Governments are not capable of making economic decisions. Governments only make political decisions. Despite claims that it is otherwise, all decisions by the Federal Reserve are political decisions.

(Visited 5 times, 1 visits today)

About Fantasy Free Economics

James Quillian is an independent scholar,free market economist, teacher of natural law, teacher and originator of the Fantasy Free approach to economics. James Quillian does not believe lies. Contact: news@quillian.net
This entry was posted in Daily Comments and tagged , . Bookmark the permalink.

Leave a Reply

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of