Lea Cabrerra

Capitalism in Jeopardy?

Very heartening to see people agree and understand the destructive capacity of central bankers.

The Fed plays a game of Russian Roullete with our economy. The game is called "PICK THE RIGHT INTEREST RATE." The game is a needless game.

If they pick the wrong rate (a rate other than what the competive forces of free markets would otherwise set) the result is economic adjustment, the degree dependant on how wrong the choice of rate and how long that wrong choice remains in effect.

If they pick the right rate (the rate the competive forces of free markets would otherwise set) economic activity will continue along the same path it would have continued had rates been set by the competitive forces of free markets.

Given the right rate is the rate set by the competive forces of 300 million free market participants, why do we need 12 people trying to figure out the right rate.

We have seen what happens when they are wrong.

Just as the monetarist replaced the keynsians, the Austrian school of economic thought must replace the monetarist. Such a school of thought will strip politicians and elites of their tools to manage our lives.

Capitalism in Jeopardy?

If you are against central planning (collectivism, socialsim, etc) then consider that the Federal Reserve is the most gross form of central planning known to mankind.

The 12 appointed (not elected) governers manipulate economic activity in their war against the business cycle in an effort to impose their social and economic ideals on the 300 million people that make up the free market place.

Why anyone believes that the wisdom of 12 Federal Reserve governers is superior to the collective concsious of 300 million market participants is sheepish.

These people and thier ability to counterfeit money and loan it to us at rates below what the free markets would otherwise charge has proven dangerous.

Yes, their abilty to bring about credit expansion creates an intial boom and perceived prosperity, but the facade ultimately gives way to the reality of inflation, misallocation of capital, and deflationary bust.

The Federal Reserve's survival is insured by the useful idiots that are Republicans and Democrats as they point the finger at each other during each economic crises. Patisanship spares the Federal Reserve and thus it survives another day to play with our economy.

Indeed, our elected leaders meddle and reak havok on our markets. But the extent by which they can inact their policies is limited only by the willingness of the Federal Reserve to finance it with its printing presses. WIthout the Federal Reserve, FNMA and Freddie Mac never could have become what it did.

Four Myths About the Free Market and Its 'Demise'

Are you for real?

It is government meddling in free markets that causes the very distortions that require the consequential corrections.

In a truly free-market, the only monopolies that exist are those that curry the favor of government intervention (see FNMA and FREDDIE MAC, FEDERAL RESERVE).

Free-markets are only free when they are free of government manipulation. Government manipulates free-markets with legislation and the Federal Reserve manipulates free markets by injecting counter-feit money at interest rate below free-market rates.

Such manipulation distorts the perfectly functioning organism we call the economy by distorting the imbalances between those that save and those that consume.

This bailout is nothing more than a continuation of policy maker's war against the eventual consequences of their policies of free-market intervention. Furthermore, it is a war against those in society that have chosen thrift and savings over consumption. The bailout is designed to manipulate us into more credit and consumption.

FOMC: Forking Over More Currency?

Of course the Fed is in a box. The arrogant money shufflers think they can defy the laws of financial physics (economics) but inevitably "money nature" has it way.

Their current stance reminds me of a couple of bank robbers who've barricaded themselves in a house after the calvary has finally caught up with and surrounded them. They've taken plenty of dollars hostage so there will be a lot of collateral damage when the final shootout takes place.

Europe and America at the Crossroads

The state and all its intervention and mischief in the free markets is the problem. The collective conscious of 300+ U.S. citizens pursuing their separate interests have been manipulated and subordinated by the regulations, the wealth transfer programs, and the financial wizardry of an elite few of 540 members of congress, 12 federal reserve governors, and 1 president.

It is the height of arrogance for 553 people to assume they are more enlightened than the collective conscious of the 300+ million markets participants. This level of power is absolutely corrupting. It breeds cronyism and makes multi, multi-millionaires out of all of them.

The power to create money out of nothing is concentrated in the hands of 12 human beings. They disseminate this counterfeit crap thru their cartel of banks creating systemic risk to the natural order of the free-markets.

These banks leverage themselves to the moon knowing that the more leverage they use, the more peril they place the rest of the market at, thus guaranteeing a taxpayer bailout once the counterfeit game has worked its way thru the system. They know the inevitable outcome. It's a matter of looting it as much as they can by leveraging themselves to such an obscene multiple that makes them, "too big to fail."

With each round of "free-money," the destruction multiplies and yet more and more power is grabbed by the very thieves that created the mess.

The counterfeiting powers of the federal reserve and its fractional reserve mechanism of leveraging its counterfeit is the single biggest threat we face. It has been incrementally robbing people of their living standards since its beginning.