That markets are incredibly stupid is pretty much implied in all the Federal Reserve commentary from the various economic religions. Think about it.
Members of the Austrian School imagine that central banks have unchecked power to “flood the system” with money. Except that they don’t. And they don’t simply because markets aren’t stupid. And since they’re not stupid, actual market participants only transact in currencies that are trusted and that will command roughly equal value for what they bring to market.
Read the rest at Forbes
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John Tamny is Founder and President of the Parkview Institute, editor of RealClearMarkets, senior fellow at the Market Institute, and Senior Economic Adviser to mutual fund firm Applied Finance Group. Tamny is the author of eight books. His latest is The Deficit Delusion: Why Everything Left, Right and Supply-Side Tell You About the National Debt Is Wrong. His others are Bringing Adam Smith Into the American Home: A Case Against Home Ownership, The Money Confusion, When Politicians Panicked: The New Coronavirus, Expert Opinion, and a Tragic Lapse of Reason, Popular Economics, Who Needs the Fed?, The End of Work, and They're Both Wrong: A Policy Guide for America's Frustrated Independent Thinkers.
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