Mangled Thoughts

Posted by D
`The Fed’s Predecessor in American History’ ,by historian H.A. Scott Trask, is a brief article worth reading.The essay illuminates what fractional banking , the business of central banks(and it is not banking) and their establishment, and fiat money (paper money) are.

The article neatly draws those triple evils are committed by governments in the course of acquiring coercive power over people and their interests, and with it govt consumption and contraction of debt.The job of reserve banks is to prop all that up including fiat money which is nothing but sequestration slips printed by govts.to take even more property than is assumed.This is as pertinent to Australia as any other country and of worthy mention is the Spring St. Spivs who will send increasing numbers of Victorians onto poverty street because of their spendthrift ways.

As the article lifts out, however, once govts. commence corrupting markets, even overthrowing them, or in this case, printing money, there are those in business who back such corruption to the hilt.In otherwords, the potential for corruption is at the very least,severely constrained when open markets and common law prevail: no one under those terms is in a position to compel others to do what they otherwise would not do, no-one is in a position to overthrow others’ interests in the pursuit of their own.When govts. step in , however, corruption runs rife.In all instances of corruption in business one is familair with , real or suspected, at bottom has stood a govt.

Fiat money, inflation and central banks are pivotal to the advance of increasingly dictatorial govt. This, quite apart from the regular phenomena of recessions and depressions.The distinction, however,might only be notional as in, a number of recessions succeeding so quickly the last that each is indistinguishable from the others.

It has added force for the U.S. is not lifting out of recession. The pontifications of `financial news reporters’ including the twit on ABC news, is trash.Just as notions like , the markets are awaiting for some sort of miraculous sign before rising.

Inflation produces short sharp booms followed by busts. The increases in govt consumption , debt accumulation , both fuelling Greenspan’s inflate or perish quackery, and trade protectionism is doing considerable damage. Market prices are no longer lifting to Greenspan great policy, wishing for better times, becuase the real economy is being beaten into the ground by each tier of govt and this applies to Australia too.And this is without considering further hooliganism like EPAs , ethanol scams,and the overthrow of common law, ( it is boggling to observe some U.S. judges, `prosecutors’ and other times’, and Australia is begiining to follow, indeed the Spring St Spivs have taken things further with Heroc and its blasphemy laws and other morality laws).

The linked article lifts some bulwarks of corruption and the emerging police state. It is well written,and ,absent of technical terms so readers do not require a degree in economics to appreciate what is set out.