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Showing posts from March, 2014

An impossible epiphany

So, you woke up this morning to learn you’ve been asked to replace Janet Yellen as chairman of the Federal Reserve.You would normally be full of questions but the guy on the other end of the phone is the president, and either the person is doing a great impression or he’s the real thing.With a robe thrown hastily around her your wife comes into the bedroom with three stout, suited men behind her.None of them is smiling.All of them are over six feet and athletic-looking.Your wife looks like she’s seen a ghost.You figure you’re talking to the guy in the White House.
This is unreal of course because you have had nothing but contempt for the Fed and government, as you’ve made clear in your many articles, books, and speeches.  You just know it’s a case of mistaken identity, a colossal blunder, that will embarrass the powers in Washington when they find out.  But you politely thank the president for his confidence in you and assure the man you will not let him down. 
Already you feel like a l…

Is sound money an unsound idea?

Governments hate sound money.Even worse, people hate sound money.Governments hate it because it puts severe limits on what governments can do.People hate it because it would mean taking responsibility for their own lives, relying on their resourcefulness instead of the government.Sound money can’t be printed, and governments that can’t print can’t buy as many votes.They tend to let the chips stay where they fall.
On a free market sound money is democracy in action. As Mises wrote, it is the most marketable commodity, as determined by market participants.  One of the reasons the market chose gold and silver as money was their limited supply, which is also the reason governments reject it.  People who allow their government to control the value of money, by controlling its supply, have surrendered their liberty.
I doubt that most people even know what sound money is.  Besides, they might retort, if there is such a thing as sound money, why is it so important?  Gold and silver are sound mo…