Cato\Washington Post article: "Abolish Central Banks"Submitted by emazur on Thu, 10/27/2011 - 19:01
Hayek's critique of central banks and the government money monopoly is totally supported by the empirical evidence. The U.S. dollar, for instance, is now worth only 1/22 of what is was worth when the Fed was formed in 1913, and most other central banks have even a worse track record. There are many groups that have experimented — and still are experimenting — with private currencies, but as soon as they begin to get some traction to see if their currencies will really work, the jackboots from Treasury and the Internal Revenue Service shut them down. It is going to be difficult to abolish the government monopoly over money because it is so profitable for politicians. Seigniorage, interest-free monetary float and inflation provide huge revenues to government, which politicians love, without appearing to be explicit taxes.