Sunday, March 6, 2011


Barron's magazine reviewed the book Inflated.

Some great lines from Mark Calabria's review:
When Whalen describes the workings of the first and second Banks of the United States, much of it feels like a precursor to later debates regarding the Federal Reserve. In this light, Rep. Ron Paul comes across as a modern-day Andrew Jackson, whose battle with the Bank of the United States is retold while also placed in the context of current events.

The book reminds us that most wars are financed not by direct taxation, but through inflation and debt. The American experience has been little different from the experiences of other countries. Beginning with the financing of the Civil War and ending with the Cold War, Whalen draws out the connections between paying for war and its broader impacts on the financial markets.

In fact, the history surrounding the creation of the national banking system offers a useful reminder that much of it was expressly designed with the intention of providing a ready source of demand for government debt.