Liberty vs. Leviathan

Chronicling Liberty's battle against Leviathan

End the Fed

I’m thoroughly enjoying my read of The Return of The Great Depression, authored by Vox Day.  I won’t venture a review yet since I’m not done but it’s safe to say, it’s very well done.  Here’s a bit from a section on the Beast from the Sea, the Federal Reserve.

What the theoretical economists and the practical financiers alike have failed to take into account is that the impossibility of socialist calculation applies to the price of money as well as to the prices of goods and services.  A central banker has no more ability to correctly ascertain the intersection of the collective supply and demand curves for money in a modern economy than the historical communist planner was able to calculate the correct number of shoes required in the now-defunct socialist economies.  The significant point is not that the Federal Reserve’s inability to enforce its target price of money or control the size of the money supply, but its inability to know independent valuations of money set on a dynamic basis by its various buyers and sellers according to their momentary needs.  Lacking this godlike knowledge, its actions will inevitably be incorrect no matter what it does, which necessarily casts serious doubt on the utility of the concept of central banking.


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December 2009
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