DONALD TRUMP AND THE CONSERVATIVE PARTY DTACP

[mick]

The Federal Reserve is in the news as its rate hiking farce has come to its predictable end.

With any discussion about the Fed and central banks, it is essential to keep the basics in mind.

You have to start with the most fundamental concept here: central planning doesn’t work. That’s the first principle.

Central planning of shoes doesn’t work. Central planning of wheat doesn’t work, and central planning of (fake) money doesn’t work.

Central banks in general—and the Fed in particular—are on a mission impossible. They don’t know what the interest rate should be. Nobody does. That’s an exclusive function of a voluntary market of savers and borrowers.

A politburo can’t centrally plan interest rates any more than they can potatoes. They’re inevitably going to fail and cause significant damage.

It’s also important to remember central banks have NOTHING to do with the free market. They’re actually the antithesis of the free market.

In Karl Marx’s Communist Manifesto, central banking is the 5th plank.

The lying media portrays central bankers as selfless bureaucrats who are just trying to save the economy. It’s a load of BS. Central bankers are the enemy of the average person.

Now, back to the rate hiking charade.