The problem, in a nutshell: Not a lack of money, but too much money. So much new money and new debt flooding the marketplace that banks and business leaders are afraid we’re staring down from the brink of a precipice. That’s leading to a massive hoarding of cash, cash that normally would be applied toward creating new jobs and growing the economy. Dick Morris explains this dangerous predicament.
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Lawrence H. White, an economics professor at George Mason University in Fairfax, Virginia, calls for abolishing the Federal Reserve. That might sound like a heretical position, but White knows whereof he speaks, having an expertise in the history and theory of free banking. He cites several examples of countries that thrived without a central bank, among them, Hong Kong, Switzerland, Canada, Scotland and Sweden.
White favors getting rid of the Fed because he believes the reserve bank has overstepped its bounds by improperly tweaking monetary policy, greatly aggravating if not creating many of the speculative boom-and-bust cycles that have wreaked havoc with the American economy. In the absence of a central bank, he favors an aggregation of private banks, financial institutions and regional clearing houses assuming key essential tasks now performed by the Federal Reserve, including fund transfers between banks and issuance of currency. H/T LearnLiberty.org
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Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc., says the Federal Reserve Bank “has checked into the Roach Motel of monetary policy” with its new plan to buy $40 billion worth of high-risk debt monthly at low interest rates for an indefinite period of time. In an interview with Reason TV, Schiff says the net effect of the plan will be to reignite the housing bubble, cause dangerous speculation and depress the value of the dollar. He calls the QE3 decision “a day that will live in infamy,” announcing that the Fed has “sealed its fate” and put “the final nail in U.S. dollar and the entire American economy.” Here is his latest Schiff Report.
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