Saturday, 18 April 2009

Ludwig von Mises v. Obama

In celebration of Ludwig von Mises, I present you: criticism of poor monetary policy.

"It would be a mistake to assume that the modern organization of exchange is bound to continue to exist. It carries within itself the germ of its own
destruction; the development of the fiduciary medium must necessarily lead
to its breakdown." - Ludwig von Mises

By fiduciary medium Mises meant fraudulent money: money that systematically violates the principle of private property; which is too say, money that does not give credit where credit is due. Money that operates outside the usual, defined, system of what we consider the working (emphasis on working) economy. More explicitly, it coincides with many of those "tea-baggers" we so know and love.

In short, less government regulation would result in only positive attributes. It would enable the regular movement of free market to find a more perfect equilibrium, which would not be limited to increased productivity and wealth for America, and the American people

For more:

[His book on Socialism -]

"It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments.Ideologically it belongs in the same class with political constitutions and bills of right." - Ludwig von Mises

von Mises does sum up the reasons behind why having a sound monetary basis is essential, beyond the obvious one liner that "non-sound will destroy the economy." His point being, obviously, and we see this today, having a government that does not care about the "rules of engagement" when it comes too making, creating and owning money - destabilizes the whole process. Despicable? Of course.

For another of his book on this subject:

1 comment: