Recent content by Sammysouth

In a free market, interest rates are set by supply and demand. If there are a large numbers of savers, the banks adjust their rate paid to lenders down and as a result can offer rates to borrowers at a low level. If there is a relative reluctance to save, banks will try to attract lenders by...

The paper money dollar experiment of the last 40 years has reached an unsolvable impasse. Since 1971, when Nixon defaulted on the dollars convertibility into gold there has been no restraint whatsoever on the Federal Reserve's ability to finance the U.S. government's boondoggle spending programs...

End the Federal Reserve and you will end out of control government spending. Currently the U.S. government spends $1.5 trillion more than in collects in taxes. It must borrow this money. In a free market this additional amount of borrowing would drive interest rates higher. Those rates would...

http://www.freemarketfan.com/ It is important that the level of economic understanding in this country is sufficient to overcome the upcoming onslaught of wrongheaded ideas which are doubtlessly coming down the pipe. Recently a politician in South Carolina proposed capping the price at which...

A butcher crams a pound of beef into a meat grinder. Out comes a pound of ground beef. One pound goes in and one pound comes out. Sure it has changed form, but it has not increased in quantity. It cannot. Enter the realm of the monetary policy with the Federal Reserve however, and perfectly...

Hussman is great...no idea what you are reading.

Often times it gets forgotten just why free markets are important. Free markets are the non coercive exchange of goods and services. On the contrary; every law, rule and regulation instituted by government is backed up by the threat of coercive force. What we currently live with in this country...

Before the Fed there were the occasional panics but they too were caused by a manipulated interest rate environment. Fractional reserve lending lowered rates below their natural rates. Two things were different back then, 1) the dollar was still tied to gold so there was no net inflation...

http://www.freemarketfan.com/ See above link.