An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Thursday, May 3, 2012
Ron Paul — Our central bankers are intellectually bankrupt
Ron Paul get it essentially right regarding central banking, although I would disagree with him about his analysis of money, i.e., that "money is a commodity," that "capital cannot be created by government fiat," and the antidote is a "return to sound money."
Read it at The Financial Times
Our central bankers are intellectually bankrupt
by Ron Paul | U. S. House of Representatives
(h/t Ramanan in the comments)
Favorite line: "Control of the world’s economy has been placed in the hands of a banking cartel, which holds great danger for all of us."
Why? Central bankers neglect the fact that interest rates are prices.
ReplyDeleteWhy would Paul say that? Every central banker understand perfectly well that interest rates are prices. That's why they use their monopoly power to try to set them. Of course, free marketers like Paul want the markets to set all such prices.
It's part of his commodity theory. He is saying that the bankers don't realize that money is a commodity (which it isn't).
ReplyDeleteI believe Paul is 99.9% funded by the gold sellers...
ReplyDeleteResp,
Paul: "In fact it is a problem of poorly allocated investments caused by improper pricing of money and credit [try improper pricing of COLLATERAL moron], pricing which is distorted by the Fed’s inflationary actions.
ReplyDeleteThe Fed has made banks and corporations dependent on cheap money [corporations have USDs coming out of their ears moron]."
What f-ing planet is this moron living on?
CBs intellectually bankrupt?
ReplyDeleteYes, and they think the solution is to drag the rest of us into fiat bankruptcy.
It's a novel concept. :)
Similar to PTSD & ToxicShock in other professions.
Like the movie, "When Reality Met Friedman"