The Fed Has Sufficient Tools — To Wreck the Economy

“These famed ‘tools’ of the central bank are nothing but cunning and arcane techniques for conjuring additional trillions of dollars out of thin air and pumping them into the global economy.

Most important, the announced expansionary policy could not be more illtimed. For it is imperative during a contraction of the economy caused by war, natural disaster, or epidemic that the price system is left free and unhampered to reveal the most valuable uses of productive resources whose quantities have been substantially reduced.

By inundating the economy with money the Fed will not succeed in miraculously expanding thee supplies but instead distorting the price structure and promoting misallocation, malinvestment, and waste of productive factors thereby deepening and lengthening the recession.”

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