Tuesday, January 24, 2012
Central Economic Planning...the end of the Soviet Union
Over the last half century honest rigorous economic analysis and a balanced approach too centralized financial planning has shown that the centralized approach cannot succeed in defining the most advantageous monetary policy for every moment. This policy of centralized monetary planning and policy is one of the primary reasons the Soviet Union is now extinct. If one views the theory of socialism and centralized economic planning and policy making through this lens, which the Austrian economist did, one must come to the conclusion that it is self terminating. Ludwig von Mises and Friedrick A. Hayek discovered this and it can be applied to central banks here and abroad and too the Federal Reserve and to Ben Bernanke in particular. It is impossible organize a complex society by central planning and coercive commands of government; there are too many variables that cannot be know or understood. The free market must be left alone since it alone is usually ahead of the curve of the knowledge that any government can trully understand and plan for in it's rules and regulations which it believes will "control" the economy. Europe will do what it will do but in this country we must END THE FED.