Financial Crisis Threatens Our Security
I read J.R. Nyquist every week at Financial Sense Online. This week Nyquist writes in A BRIEF COMMENTARY ON FINANCIAL CRISES
The West doesn’t seem to understand, as yet, that the emerging financial crisis isn’t merely a financial crisis. In Beijing and Moscow it is seen as something more. It is seen as part of a strategic sequence in which U.S. power is eclipsed.
That’s why I write about inflation, government spending, our fiat currency, the growing trade deficits, the growing budget deficits, the extraordinary debt that America owes, the stupid law that created the Federal Reserve in 1913 and the devaluation of the dollar. I want to yell, “Wake up, America! Stop voting for socialists and statists. It is ruining this country.”
Nyquist concludes:
If the U.S. dollar collapses it will seem as if the world has gone insane. Perhaps it is too late. Perhaps the insanity is on its way and there is nothing we can do to stop it.
If I understand the Austrian Business Cycle Theory correctly, by artificially keeping interest rates low, the Federal Reserve, not the market, would be to blame for the coming economic collapse. Is that correct?
Adrian Douglas has written a lot about money at Le Metropole Cafe. He writes
Ergo, you are correct that the Fed would be responsible for an economic collapse by creating the borrowing binge and then keeping interest rates artificially low. What we are seeing now is a flood of money into the system which is highly inflationary.