The American economy is broken

The American economy is broken and there is nothing the government can do to fix it. However, the free market does have a cure: it's called a recession, and it's not fun, easy or quick. But if we put our faith in the power of government to make the pain go away, we will live with the consequences for generations.

Something cannot be effortlessly created from nothing.

When the government spends, the money has to come from somewhere. If the government doesn't have a surplus, then it must come from taxes. If taxes don't go up, then it must come from increased borrowing. If lenders won't lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing.

The importance of things like enterprise, hard work and self-reliance

America was a place where opportunity and risk were both much higher than on early 21st-century.

The bold and enterprising could succeed big, or fail big,without fear of confiscatory taxes or hope of government bailouts.

Getting ahead called for a keen mind, a strong back, and a willingness to work hard and take chances; opportunities to succeed by manipulating laws and regulations were harder to come by.

The importance of things like enterprise, hard work and self-reliance was America.

The Federal Reserve

The Federal Reserve is in the business of central planning instead of central banking.

The Fed's assets have grown much faster than its capital.

The Federal Reserve is itself a highly leveraged financial institution.

The flagship branch of the 12-bank system, the Federal Reserve Bank of New York, shows assets of $1.3 trillion and capital of just $12.2 billion.

Its leverage ratio, a mere 0.9%, is less than one-third of that prescribed for banks in the private sector.

The freedom of the marketplace

The federal government is proliferating in the economy at a logarithmic rate.

The freedom of the marketplace is still the only effective mechanism for eliminating poor business practices, identifying productive investment, and providing long-term growth.

The difference between a Ponzi scheme and the Social Security

What is the difference between a Ponzi scheme and the Social Security?

The firts one is illegal and the second one is legal.

Central banks

Central banks can create infinite quantities of money, at no cost.
So they can reduce its value to nothing without difficulty.

As Robert Mugabe has shown, anybody can run a printing press successfully.

Financial markets are perfect

Financial markets are perfect.

In particular when they are susceptible to boom-and-bust cycles.

Cycles of this sort have been, are and will be perennial with markets.

For addressing the results of these cycles all you need is free enterprise and free market.

To solve economic problems

To solve economic problems you have only two tools: personal responsability and market forces.

Government involvement in economic management is always the origin of an economic crisis.

More government action

More government action is more recession duration.

Let the market solve the problem.

The crisis is due to bad lending and investment decisions.

Commercial failures were compounded by a reliance on excessive leverage, or borrowed money.

That leverage was made even worse by the banks' use of off-balance-sheet vehicles.

Let the market solve the problem.

The only way of wealth creation

Individualism working for good is the only way of wealth creation.

Government is taking my money

Government is taking my money in order to spend it "better" than I can.

The best excuse ever invented to expand government.

It is both frightening and discouraging to hear politicians offering more Keynes at a time when what is most needed is a way of restoring the appetite of the private sector for risk.


The Keynesian theory, calling for government spending as a way to boost aggregate demand during economic downturns, is the best excuse ever invented to expand government.

Row capitalism will always be alive

I believe in markets.

I also believe that there is not a role for government.

Row capitalism will always be alive no matter who will always be trying to kill it.