| | | | | Very intelligent people can build compelling logical constructs based on a fallacy.
When you’re good at it, they call you a philosopher. When you’re great at it, you get a job as a consultant.
And when you create logical fallacies with money, you get to a be a central banker.
What’s the primary central banker fallacy? Centrally planned money provides more price stability than competitive markets can alone.
But the truth (and I don’t know why this still must be pointed out after being provably false for decades) is that centralized decisions fail. Whether the price of money or five-year plans, central planning only creates more problems. And they do so without solving the problem they intended to solve in the first place.
Central banking’s intellectual foundations ignore the incredible power of choice and competition to create and disseminate information through price discovery.
To ignore this power is like believing in perpetual motion machines.
Which reminds me of something Kurt Vonnegut once wrote…
| | | | | |
|
|
0 Response to "Do You Believe in the Fed’s Perpetual Motion Machine?"
Post a Comment