This time we head to the Cobden Centre which I have added to the blogroll on the right hand side.
The Cobden Centre (for honest money and social progress) is an Austrian economics website with a large number of contributors.
The Cobden Centre's supports Richard Cobden's view that "Peace will come to earth when the people have more to do with each other and governments less".
Today's quote comes a post by Time Price over at the Cobden Centre.
This got today's quote of the day for calling the Federal Reserce a "private banking cartel".
This opens up a whole can of "conspiracy economics" worms.
The four words that define western economic policy [Cobden Centre]
The post is a nice summary of the Austrian position regarding the current US debt crisis.
In Austrian business cycle theory, the central bank is the culprit responsible for every boom and bust, firstly in fuelling excessive bank credit growth and maintaining interest rates at overly stimulative lows; then in prolonging the inevitable recession by propping up asset prices, bailing out insolvent banks, and attempting to stimulate the economy via the mechanism of deficit spending. It is difficult to see why the theory is so problematic given that the US Federal Reserve, for example, is not an agency of the US government per se but rather a private banking cartel. When push comes to shove, whose interests will the Fed ultimately protect – those of the banks, or those of the rest of the productive population?