Real Money Please

This is for my friends R&G. They seem to be falling for the same trap like many others while trying to assign blame for the current economic woes. For the next few days we will continue to hear more cries for handing over more powers to central planners to “regulate”.

Few things I find amazing.

1) Only in the wonderland of regulation – you find people who had the power to do something, yet they can’t/don’t do what they claim they were supposed to do as our protectors and saviours, screw up badly, then go back to their boss (taxpayers) and say, “I screwed up badly, I need more power, more money, more authority, more ….” This they get to do again and again, and their bosses fall for the trick every time.
2) People who set the fire (dot com bubble, asset bubble, etc. with loose monetary policy and fairyland credits) to the barn (banks and financial institutions) keep pouring more fuel over the still hot embers; now want to play the role of the fire service, with more money, power, people and bigger fiefdom.

I promise you that once you understand monetary policy, your interpretation of world events (at least in the economic sphere) will never be the same again. Check out the following. Very much applicable in India or any other country you live in.

• Private Coinage
• Good and Bad Credit
• The Myth that Laissez Faire …
• Is the Fed an Inflation Fighter or Creator?
• More articles (on money, inflation, credit, crisis) from Frank Shostak

Happy enlightenment!