The Fed

We should not be afraid of deflation. We should love it as much as our liberties.

Recorded at Jekyll Island, Georgia; May 1992.

Recorded at Jekyll Island, Georgia; May 1992.

Recorded at Jekyll Island, Georgia; May 1992.

Recorded at Jekyll Island, Georgia; May 1992. 

What is amazing about America circa 2008 is not the citizens' money illusion — history has seen that aplenty — but the utter lack of resistance to it.

If we are really sincere about not wanting to repeat the 1930s, the political classes should do nothing but cut taxes and free the labor market — but otherwise do nothing to "help" the problem.

We have a unique opportunity to provide future stability for our banking system. Sadly, it is an opportunity that will almost assuredly pass us by.

Bernanke and company are making matters worse by endlessly inflating and bailing out dysfunctional firms. The result will be more unemployment, not less.

There is nothing that the government can do today — apart from repealing laws and regulations — that will make an improvement on the workings of the market.