(no subject)
After reading the comments below, it reinforces my belief that the Federal Reserve Bank is a delusion. Directing our economy is like trying to control the tides. The harder we try, the more likely we are to hurt ourselves or end up looking foolish. As long as we control the predators so they don't kill off all the prey, it will work fine all on its own. When we try to tell all the fish where to swim, and how to school, it will all fall apart. No one is smart enough to see the whole picture, but we're all smart enough to make it work if we trust each other.
The value of currencies, like the value of many other commodities, depends upon a thousand factors which cannot be measured. These depend upon the opinions of the thousands of businessmen who want to buy currencies and upon those who wish to buy and sell the goods those currencies can purchase.
No government has a yardstick that can measure the value of the goods currencies can buy, and this means that no government has a standard for measuring the value of currencies and the rate at which they should exchange for one another. The only possible way to ascertain the value of a currency is to place it on the free market and see what people will pay for it.
- George Winder, The Freeman [May 1977]
The value of currencies, like the value of many other commodities, depends upon a thousand factors which cannot be measured. These depend upon the opinions of the thousands of businessmen who want to buy currencies and upon those who wish to buy and sell the goods those currencies can purchase.
No government has a yardstick that can measure the value of the goods currencies can buy, and this means that no government has a standard for measuring the value of currencies and the rate at which they should exchange for one another. The only possible way to ascertain the value of a currency is to place it on the free market and see what people will pay for it.
- George Winder, The Freeman [May 1977]