Milton Friedman’s caution on the Federal Reserve takes on extra meaning at this time. Read it and then watch these two videos:
The power to determine the quantity of money… is too important, too pervasive, to be exercised by a few people, however public-spirited, if there is any feasible alternative. There is no need for such arbitrary power… Any system which gives so much power and so much discretion to a few men, [so] that mistakes – excusable or not – can have such far reaching effects, is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic – this is the key political argument against an independent central bank.
Increasingly the Fed is coming under more pressure. Its latest QE adventure may be the act that galvanizes a political movement to reform it. Ron Paul, like Friedman, has been ahead of this curve.
Hat Tip for the second video to The Market Ticker:
