Saturday, December 20, 2008

Some Good Weekend Reading

I've always been a frequent reader of Mises.org, or the Ludwig von Mises Institute. They provide a tremendous resource of free articles, commentary, and books on economic issues. I would call them "economic purists", and believe me, we need more of them around right now. An article I'd like to pass along today is a discussion of the credit problems and the risk of deflation, or lack thereof. It was written by Jeff Bonn. Here's a couple of impressive quotes from the article, but it is worth reading in its entirety:

Credit is not wealth: it is at best someone else's wealth. At worst, credit
is purely fabricated currency.

The same mistakes that were made during the Great Depression are being made
now. The call to prop up prices will grow to a din as the self-interests of
businesses push themselves on the Federal Reserve and Treasury.

The business and economics establishment will soon call for a new New Deal,
and all the socialist policies of FDR will be dusted off and respun to the
unwitting public, and the years that follow will be ones of pain, high prices,
and a real fall in the standard of living.

As long as our central government has the ability to dole out these favors,
there will be special interests lining up to receive them.

Its important to look back at history when making the economic decisions that will impact tomorrow. Unfortunately, our leaders in Washington become so wrapped up in the short term effect, and perceived effect, that they can't even see what they're doing to the future.

Here's the entire article, and take a look at the entire site, it will be worth your time.

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