Here’s a sliver of a picture of the “free market” that exists in the U.S., just on the money side alone:
(1) a coercively imposed monopoly on the production of money;
(2) monopolistic legal tender laws, which artificially privilege the money issued by the government-established central bank;
(3) a central bank with the monopoly power to create legal-tender money out of thin air, a power granted to it by the government, and with a mandate to manipulate the money supply in the purported service of maximizing output and minimizing unemployment and price inflation;
(4) interest rates influenced by a monopoly monetary authority instead of by the free market;
(5) implicit and explicit bailout guarantees for large financial institutions;
(6) artificially low borrowing costs for large institutions, since the public knows these institutions will be bailed out;
(7) artificial protection of the banks, in the form of government deposit insurance and various Federal Reserve mechanisms, thereby keeping afloat a fractional-reserve system that would be radically different under a free market; under the existing system the banks will therefore create more money out of thin air than they otherwise would.
Now that’s just the money side. Forget about government real-estate programs and the whole rotten system of government intervention.
domingo, outubro 27, 2013
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