I'm going to delve into the region of politics briefly. Whatever your political bent, please read the following and then look into it for yourselves.
In this republic turned democracy of ours, there have been very few Presidents and candidates for President who have affirmed their committment to follow the constitution in the exercise of their duties. Grover Cleveland was probably the last one and he was in office over one hundred years ago.
This past week, Ron Paul announced his candidacy for President once again. Unfortunately, with all that is against him, he stands little chance to be elected; yet, he is the one candidate that would change the direction this country has taken over the last hundred years. Still, he deserves a look for all freedom loving Americans.
Sunday, May 15, 2011
Friday, May 6, 2011
After a long hiatus...thoughts on Central Banking
My apologies for the long hiatus. Much has happened in this country since then. Our Central Bank, otherwise known as the Federal Reserve, is determined to undermine the currency, robbing from all those who have managed their money well (i.e. spent less than they earned and saved the difference). It is a shame, but not surprising.
In my time, there was much discussion about Central Banking with the Second Bank of the United States. President Jackson put an end to it and this country enjoyed many decades without a Central Bank. In those times, this country prospered as rail lines stretched "sea to shining sea" and industry and technology flourished. The general price level (now known as CPI) actually fell between that time and the creation of the Federal Reserve, dispelling the modern myth that we need a gradually rising price level to spur economic growth.
The Fed's 'mandate' of stable prices and low unemployment has become in our time rising prices and high unemployment because a Central Bank, at its core, cannot foster either. This Central Bank will end like the Second Bank of US before it. It is only a matter of time, and how much pain we will have to endure in the interim.
In my time, there was much discussion about Central Banking with the Second Bank of the United States. President Jackson put an end to it and this country enjoyed many decades without a Central Bank. In those times, this country prospered as rail lines stretched "sea to shining sea" and industry and technology flourished. The general price level (now known as CPI) actually fell between that time and the creation of the Federal Reserve, dispelling the modern myth that we need a gradually rising price level to spur economic growth.
The Fed's 'mandate' of stable prices and low unemployment has become in our time rising prices and high unemployment because a Central Bank, at its core, cannot foster either. This Central Bank will end like the Second Bank of US before it. It is only a matter of time, and how much pain we will have to endure in the interim.
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