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Ron Paul OpEd: "Our Central Bankers are Intellectually Bankrupt" - Financial Times, UK, May 2nd, 2012

Our central bankers are intellectually bankrupt

FT.com OpEd

By Ron Paul

May 2, 2012 7:54 pm

The financial crisis has fully exposed the intellectual bankruptcy of the world’s central bankers.

Why? Central bankers neglect the fact that interest rates are prices. Manipulating those prices through credit expansion or contraction has real and deleterious effects on the economy. Yet while socialism and centralised economic planning have largely been rejected by free-market economists, the myth persists that central banks are a necessary component of market economies.

These economists understand that having wages or commodity prices established by government fiat would cause shortages, misallocations of capital and hardship. Yet they accept at face value the notion that central banks must determine not only the supply of one particular commodity – money – but also the cost of that commodity via the setting of interest rates.

UPDATE:

Courtesy of El Buggo, an alternate link to the above article, click here.

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People Who Are Have Monetary Knowledge Either Hate Him

or love him. Very few, level-headed, respectful disagreements. People are viscous aren't they At least Paul is making people aware of a potenital problem. I used to wory abou the Fed, but now that I realize they can just print money for lack productivity or labor, I realize that I should write my elected reperesentatives to support legislation that would give 1 billion dollars to every American citizen and the Fed can print it up - have it delivered to accounts. Why have it "trickle" through banks - why not directly to main street?

Oh, pardon y'all,

think you do have to register to read it.

it's been awhile I just have cookie on mine so forgot.

but like NYT, WaPo, and LATimes, email registration is FREE. a bit of a hassle, but it's Doc's OpEd and well worth a read!

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul

thanks

updated.

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul

Updated!

RP, brilliant as always!!!

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul

Does that make my title look fat?

headline updtated...

a Must Read!

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul