Tuesday, May 28, 2013

Mises on Quantitative Easing and Central Banking

As Mises states.....

Credit expansion is the government’s foremost tool in their struggle against the market economy. In their hands it is the magic wand designed to conjure away the scarcity of capital goods, to lower the rate of interest or to abolish it altogether, to finance lavish government spending, to expropriate the capitalists, to contrive everlasting booms, and to make everybody prosperous"—with the consequence that such an artificial boom inexorably will lead to the bust.

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