It is unfortunate that we still have to revisit the consideration of worker ownership of production after its numerous failures. But what if it’s different next time you ask? Allow Ludwig von Mises to dismantle the philosophy in a succinct way here. This was originally published in 1951.
“If you hoped that monetary policy would ever return to normal, you’re in for some disappointment. It appears as though central banks are hell-bent on doubling down on their mistakes. The past century has demonstrated time and again (Germany, Yugoslavia, Zimbabwe) the destructiveness of creating money out of thin air. Yet central banks continue with their money printing, going to greater and greater lengths and unveiling new tools and policies to try to stimulate their economies. It’s been so long now since monetary policy was “normal” that we’re into a new normal: permanent easing.”
Read more here.
In 1971, Nixon effectively ended the Bretton Woods agreement, taking the dollar completely off any link to gold. Since then, we’ve had a debt-dependent world where all but the extremely wealthy have suffered severe reductions in our real income and standard of living. Now, we are seeing the end of an unprecedented monetary experiment as industries and individuals are reaching peak debt and starting to deleverage due to uncertainty and lack of faith in the central banks. We cannot print our way to prosperity. We must return to a savings-to-capital economy where entrepreneurs use profits to improve productivity. As Mises and others pointed out long ago, this is the only way to increase wealth.
Now that negative interest rates have been implemented by some of the world’s largest central banks, there are powerful forces suggesting a ban on cash (a dire threat to freedom and self-determination, and a gigantic last step toward tyranny).
“This is getting just plain nuts. Here is what Janet Yellen said today about the possibility of negative interest rates:”
In light of the experience of European countries and others that have gone to negative rates, we’re taking a look at them again because we would want to be prepared in the event that we needed to add accommodation.“
Allow David Stockman to further clarify the mad misadventures of our monetary mandarins here: Simple Janet—The Monetary Android With A Broken Flash Drive .