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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Monday, August 17, 2009

Quote of the day....

If the crisis were ruthlessly permitted to run its course, bring about the destruction of enterprises which were unable to meet their obligations, then all entrepreneurs — not only banks but also other businessmen — would exhibit more caution in granting and using credit in the future. Instead, public opinion approves of giving assistance in the crisis. Then, no sooner is the worst over than the banks are spurred on to a new expansion of circulation credit.

-Ludwig von Mises, Austrian aristocrat, economist, philosopher, author and classical liberal who had a major influence on the modern libertarian movement and the Austrian School-
This was central banker Greenspan's mistake, he never allowed investors to lose money by creating expansionary monetary policy to support asset prices. This profligate monetary creation was the flame that ignited the fuel of horrible government policy from taxes to direct intervention in forcing institutions to hold assets created by this policy. See the Mises story here.


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