On The Creating Wealth Show with Jason Hartman, recent guest Thomas Woods reflected upon the prevailing conventional wisdom which says the free market has failed, thus intervention by the federal government is necessary to right the ship of economy.
Nothing could be further from the truth. This economy cannot be blamed for the fiscal meltdown because there has been no free market in the United States since the early to mid 1920’s.
Think about it. Can any country which has a central bank manipulating interest rates truly call itself a free market? Our present troubles can be traced to previous fed chairman, Alan Greenspan, who made credit artificially easy and cheap. Woods pointed out that when a country’s monetary authority creates money out of thin air, tampers with the money supply, it tends to lead investors towards massive errors in judgment. People get reckless. It doesn’t help when they come to expect a bailout when their endeavors crash and burn.
The dot com boom of the late 1990’s was a perfect example. Wall Street and venture capitalists were throwing money by the fistfuls at any start up that tacked “com” after their name. A few survived and could actually be called good investments but most are nothing more than digital roadkill.
Something must be amiss. A recent release of the scale of economic freedom showed the US is in danger of falling out of the top 10. And the trend is worsening. China is moving towards freedom while we seem to be running away from it.
Whadya gonna do?
Why not check out our sister website Holistic Survival and learn how to protect the people, places, and profits you care about in uncertain times?
The Platinum Team
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