Friday, May 4, 2012

Central Bankers

Ron Paul wrote an article for the Financial Times that calls out the bankrupt central bankers.  Decades ago, Americans were afraid of the Soviets and their command-and-control centrally planned economies.  Along the way, we have given central bankers authority to centrally plan and manipulate monetary policy.  When did we stop believing in free markets?

Our central bankers are intellectually bankrupt
By Ron Paul

Central bankers neglect the fact that interest rates are prices. Manipulating those prices through credit expansion or contraction has real and deleterious effects on the economy. Yet while socialism and centralised economic planning have largely been rejected by free-market economists, the myth persists that central banks are a necessary component of market economies.