The Political Inquirer

In a time of deep recession we need to be raising interest rates to encourage saving for capital growth and to prevent borrowers from making more malinvestment (or to prevent them from bailing themselves out of malinvestment). Instead, Ben Bernanke is doing the exact opposite of what the Federal Reserve needs to do. His latest threat to cut interest rates again shows his devout following to bad monetary policy. Ludwig von Mises explained monetary theory in the best way possible nearly a century ago in his The Theory of Money and Credit. The sad thing is, I think Bernanke knows what he is doing is wrong. He’s just blowing with the wind of Statism.