Thursday, February 19, 2009

Interesting but depressing, literally.

Art Laffer certainly came off the moron in this discussion. This is prior to the current collapse. Interestingly the real free market advocates have been warning people regarding this crisis. We got ignored and the collapse came. So who do you think is getting the blame? Us, of course. Sure that makes sense. Peter Schiff got it spot on the money when he made his forecast. Laffer was about as wrong as one could be.

Nor should we forget the prophet, Ludwig von Mises, who warned more than half a century ago:
True, government can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artifical boom and the appearance of prosperity. But such a boom is bound to collapse sooner or later and to bring about a depression.
You will find that in his work Human Action.