Surprise: Now They’re Lying About the Banks
From the Tom Woods Letter:
Nobody wants to talk about something as abstruse as banking until the you-know-what hits the fan.
Then, when people do start talking about it, all kinds of nonsense comes pouring out of their mouths.
Tomorrow on the Tom Woods Show I’ll be talking about the Silicon Valley Bank fiasco and its implications. In the meantime, I want to take aim at the absurdities making their way around social media.
Let me start by saying: the present system of money and banking is really indefensible. It is the farthest thing from a free market.
There’s no other way to describe it: what we have is a cartel, overseen by a non-market institution, the Federal Reserve System, which is a creation of Congress and has been given monopoly privileges by which it directs money and banking in the United States.
According to the mythology, the Fed has given us more stability than we once had — fewer and shallower recessions. This is provably false, but I’ll write about that another time.
The system we have generates the boom-bust cycle, redistributes wealth from the poor to the rich, makes saving for retirement borderline impossible, and institutionalizes the problem of moral hazard, because everyone knows there is no physical constraint preventing the paper-money producer from bailing out powerful financial institutions.
You will hear plenty of cries about “deregulation” and the alleged need for “more regulation.” These completely miss the point.
Trying to “regulate” our way to stability in a rickety state-established system is an attempt to put lipstick on the proverbial pig. The problem is the system itself, not some lack of “regulation.”
Not to mention: most of the alleged “deregulation” that is supposed to have caused our problems over
Article from LewRockwell