Tuesday, September 23, 2008

Ron Paul's take

Ron Paul sounds off on the current state of things, he's always a breath of fresh air not because I tend to agree with what he says but because he genuinely upsets people, and I respect that. I get a handful of angry emails from the columns I write at the State Journal-- and if I can write something that makes someone want to vent at me through email, I must be getting somewhere.

Note also his allusion to Austrian Business Cycle theory!

"The key measure by which the Fed caused this boom was through the manipulation of interest rates, and the open market operations that accompany this lowering.


Longer-term and more capital-intensive projects, projects that would be unprofitable at a high interest rate, suddenly become profitable. Because the boom comes about from an increase in the supply of money and not from demand from consumers, the result is malinvestment, a misallocation of resources into sectors in which there is insufficient demand."

Who'd have thought CNN would have an article with a slice of ABC in there?

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