With his essay “An Austrian Economic View” posted today at GoldMoney, the economist and former banker Alasdair Macleod, today challenges the Keynesian and monetarist market manipulators as powerfully and yet as succinctly as ever could be done.
Macleod writes that if the market manipulators ever open their minds to an alternative, “The first thing they will learn is that the economic benefits of credit expansion are a myth. All it does, by a process of capital redistribution — from savers to those who are first in line to receive the new money — is distort the economy and restrict its long-term potential. By lowering interest rates and diverting private-sector resources from genuine production to government spending, the economy becomes less efficient and malinvestments occur. The mistake has been to consider only the visible benefits, such as short-term job creation, while ignoring the destructive effects of deficit financing.”
Macleod’s essay has been posted at GoldMoney here: An Austrian Economic View by Alasdair Macleod