"Following Monday’s historic stock market downturn, many politicians and so-called economic experts rushed to the microphones to explain why the market crashed and to propose "solutions” to our economic woes...
...the fault lies not with China’s central bank but with the US Federal Reserve.
The Federal Reserve’s inflationary policies distort the economy, creating bubbles, which in turn create a booming stock market and the illusion of widespread prosperity. Inevitably, the bubble bursts, the market crashes, and the economy sinks into a recession.
An increasing number of politicians have acknowledged the flaws in our monetary system. Unfortunately, some members of Congress think the solution is to force the Fed to follow a “rules-based” monetary policy. Forcing the Fed to “follow a rule” does not change the fact that giving a secretive central bank the power to set interest rates is a recipe for economic chaos. Interest rates are the price of money, and, like all prices, they should be set by the market, not by a central bank and certainly not by Congress.
...When bubbles burst and recessions hit, Congress and the Federal Reserve should refrain from trying to “stimulate” the economy via increased spending, corporate bailouts, and inflation. The only way the economy will ever fully recover is if Congress and the Fed allow the recession to run its course.
Of course, Congress and the Fed are unlikely to “just stand there” if the economy further deteriorates...
Congress will not adopt sensible economic policies until the people demand it.
...too many Americans still believe they must sacrifice their liberties in order to obtain economic and personal security. This is why many are embracing crony capitalists who peddle snake oil...
Eventually the United States will have to abandon the warfare state, the welfare state and the fiat money system that fuels leviathan’s growth.
Hopefully the change will happen because the ideas of liberty have triumphed, not because a major economic crisis leaves the government with no other choice."