Escape From the Depreciating Dollar

[Kevin_Kennedy]

The immediate criticism is that this step would curb the power of central bankers and government to create money out of thin air to fix the crisis. But the criticism alone makes the point. It would indeed restrict their power, and that is precisely why it needs to be done. True liquidity is based on savings and capital; it cannot be created by decree. Decrees end up creating money out of thin air, which ends up overriding market preferences and generating inflation. Everything officials do to fix the crisis ends up prolonging it.

Full Article:
Escape from the Depreciating Dollar - Llewellyn H. Rockwell, Jr. - Mises Institute