'...central planning destroys the capital base and creates economic randomness that eventually ends in killing prosperity.'<blockquote>The title [<a href="[
mises.org] Chaos</a>] comes from Mises's description of the reality of central planning and socialism, whether of the national variety (Nazism) or the international variety (communism). Rather than create an orderly society, the attempt to central plan has precisely the opposite effect. By short-circuiting the price mechanism and forcing people into economic lives contrary to their own chosing, central planning destroys the capital base and creates economic randomness that eventually ends in killing prosperity.
This important work was written decades after Mises's original
essay on economic calculation and includes the broadest and boldest attack on all forms of state control.
-
Planned Chaos'The competitive currency debasement can be seen in the price of gold and silver.
None of these central bank measures are doing a damn thing for the real economy (in the US or anywhere else), but it sure has ignited a fire in gold and silver.'
- Mish,
Global Competitive Debasement; Currency Wars Begin; Message of Gold, October 05, 2010
'Not only did QE fail to do what the Bank of Japan wanted (raise prices), QE has also failed to stimulate bank lending as Bernanke wants. Moreover, Japan's currency intervention efforts have not accomplished anything, ever.
But yeah... this time is different, because .... politicians know better!
By the way, this exercise in stupidity by all the central banks in question, shows just how hard it is to destroy a currency, even when you try (except against gold of course).'
- Mish,
Japanese Politicians fed up with Deflation, Challenge BOJ Independence, October 04, 2010
'Bernanke, knows full well Congress is unlikely to act in any meaningful way. When they don't, and when a global currency crisis is well underway, Bernanke will point his finger and blame Congress.
Thus, Bernanke's statements are not about fiscal prudence, but rather all about absolving the Fed in general, and Bernanke in particular for the upcoming global financial collapse.'
- Mish,
Bernanke says Lawmakers Should Consider Rules on Fiscal Limits; Expect Hissy Fit from Krugman; Bernanke Pisses in the Wind, October 05, 2010
'Ultra-loose monetary policies by the Federal Reserve and the European Central Bank are throwing the world into "chaos" rather than helping the global economic recovery, Nobel Prize-winning economist Joseph Stiglitz said on Tuesday.'
- Walter Brandimarte,
Fed, ECB throwing world into chaos: Stiglitz, Oct 5, 2010
'...In gold money we've seen tremendous demand from Germany and Holland over the past few months, ever since Mr Trichet announced, after saying he wouldn't do it, that the European Central Bank would be buying government bonds and turning it into currency. And that created a lot of nervousness in Holland and Germany which are typically countries that favour sound money, countries where notably savings are considered to be important and protecting one's purchasing power...'
- James Turk, Founder and Chairman, Gold Money (
Gold at $1,300, where to from here?)</blockquote>
'Dr. Faber confidently predicts that greater government control over the economy will hamper economic growth rather than stimulate it, and that interventions into the free market, no matter how large or well meaning, will continue to fail as they consistently have in the past.'<blockquote>'Dr. Marc Faber is not only one of the world’s most outspoken critics of the Federal Reserve and of its monetary policy, but is quite possibly the Federal Reserve’s most credible critic. Dr. Faber’s detailed, evidence-based arguments, linking Federal Reserve policy decisions, such as interest rate changes, to economic developments like the US housing bubble and oil price changes are supported by thorough research. Dr. Faber’s research raises serious questions about the results of central economic planning in the form of central bank monetary policy and about the wisdom of intervention into the economy by governments. The evidence suggests that centralized manipulation of money and credit has a destabilizing influence on the economy overall—it increases economic volatility—and has unintended consequences totally outside the control of so-called monetary authorities. History shows that well-intentioned lawmakers and their economic advisers cannot predict the outcomes and unintended consequences of economic interventions. Neither central bankers nor governments have been successful in substituting centrally planned economic agendas for the decentralized decisions of millions of entrepreneurs and owners of private capital, but they persist nonetheless with ever more centralized control and ever larger interventions. Dr. Faber confidently predicts that greater government control over the economy will hamper economic growth rather than stimulate it, and that interventions into the free market, no matter how large or well meaning, will continue to fail as they consistently have in the past.'
- Ron Hera,
Interview: Dr. Marc Faber on the Federal Reserve and Hyperinflation, September 18, 2010</blockquote>