John Maynard Keynes, Milton Friedman and Murray Rothbard, started this ongoing debate many years ago. Each argued the the merits and misery of two competing economic philosophies. "Laissez Fare" Economics is viewed as Libertarian in principle, because it begs the government to leave its hand out of the economy and trust business to flourish on its own.
The principle of "Laissez Fare" is an economic system that economically challenges people who are unwilling to work, are lazy or lack the basic self respect and pride needed in the furtherance of their life. It does not, however, allow for the rise of Fascist Oligarchs and Monopolies. In principle it leaves the running of our commerce to ourselves in a manner that ensures free and open trade with all nations.
Our current economic system as seen by the Federal Reserves intervention today was a display of unparalleled meddling, a desperate move to stop the volatile market decline on Wall Street. This interventionist policy takes the free choice out of the hands of people like you and I who have our own principles and ideas on commerce.
The Fed Funds Rate cut of .75% was amazing in calming the U.S. market, but was troubling for the U.S. dollar as those international nations who trade with us begged us not to cut the rate. Many nations already are burdened with dollars that become worth less every day, dollars some nations in Opec are refusing to accept.
There is an illusion going on that only a handful of people see, an illusion that magically keeps an appearance that our stock market losses are low. It does this with inflated dollars that are worth less. To put this into a simple perspective imagine you purchased a new car for $10,000.00 and after driving it for ten years you sell it for $12,000.00. You are under the illusion that you just made 20% on the sale of your car. What would you then do if you found out that $12,000.00 today only could purchase what $3,000.00 purchased ten years ago?
The math is simple, Inflation robbed you of $9,000.00 or 90% of the original purchase price. The real horror about inflation is that many Americans are becoming savvy of the Federal Reserves tricks. The Fed concerned about letting their inflation scam out of the bag, found a way not to include food and energy as part of their reported inflation figure. This is probably due to the negative and embarassing image image to the Fed that these wrecklessly inflated items represent. Thes Items, used most often by us, have artificially surged 10%-20% in price over the last year. You confusion over these "cooked books" is deliberate and amounts to nothing more than the science of aggregate Federal Grand Larceny of us the people.
To make things look even rosier our leaders enter America into treaties like NAFTA and GAFTA and Export our jobs and manufacturing to countries that have no labor unions, few human rights laws, and extreme poverty. We in turn are calmed into believing that these cheap toxic slave products is the true purchasing power of the dollar. Meanwhile inflation gets reported at an unbelievable 4.1% (Something to remember next time you buy a gallon of gas and milk.)
History always shows that in the end, the Federal Reserve Systems policy of creating money out of thin air fails, and fails hard. We have seen this in Germany with the Deuchmark and every other place on Earth where a policy of printing money for debt was ever undertaken.
Today's market volatility, is not over only delayed a while. Our country has made more debt and empty promises than it can afford to pay for. America is becoming a nation up for sale at the bargain price of desperation and failed economic policy. If we can recover from the horrific mistake of excessive debt, greed, broken promises, and our systematic attack on our right to exist as a nation, it will be several years of hardship gone by.
I personally believe that the Federal Reserve System has failed in its function and now is the time to press for a return to a "Laissez Fare" Economy with a sound monetary sytem.