In response to:

Can We Envision a World without a Central Bank?

Anthony305 Wrote: Sep 20, 2012 5:59 PM
And we get to pay the price, through an economy misdirected by artificial interest rates and ever-increasing prices, driven by production of money and credit "out of thin air" to cover government borrowing, bank bailouts, etc.

I’ve expressed concern about QE3 and other decisions by the Federal Reserve about monetary policy, but I have also admitted that it’s difficult to know the right monetary policy because it requires having a good idea about both the demand for money and the supply of money.

But this raises a bigger issue. The only reason we expect the Fed to “know the right monetary policy” is because it’s been assigned a monopoly role in the economy. But not just a monopoly role, we also expect the Fed to be some sort of omniscient central planner, knowing when...

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