Yesterday, the saints at central banks in China, Europe and the UK said they would perform what could only be a miracle. The world economy wheezes, rattles and shakes because it has been poisoned by too much debt. The central bankers offer a cure â€” more debt!
The US had no central bank before 1913. It had higher rates of GDP growth back then. It had a stronger currency too â€” the dollar of 1913 was worth about the same as a dollar of one hundred years earlier. Now, itâ€™s worth about 3 centsâ€¦and disappearing fast. On the surface of the argument, it would appear that Americaâ€™s central bank has actually made things worse. Maybe that is a coincidence; post hoc ergo propter hocâ€¦and all that. But maybe there is a cause and effect relationship. Maybe a central bank CAUSES the economy to produce less wealthâ€¦and CAUSES the currency to lose value.
Could we exist without Homeland Security? Without Twitter? Without rap music?
Apparently so. We didâ€¦for many thousands of years. Happily.
Could the universe still exist without these interest rate manipulators? We donâ€™t know; but weâ€™d like to find out!