???The establishment of Central Banking removes the checks of bank credit expansion, and puts the inflationary engine into operation.???
— Murray N. Rothbard, ???What Has Government Done to Our Money????
Last Monday morning???s Yahoo Finance headline was most appropriate: ???Markets Rise on Summers???s Decision; Free Alcohol in Stores.??? The announcement had reference to Larry Summers???s decision to withdraw his name as the frontrunner to be the next Fed chairman. The free alcohol refers to Urban Outfitters announcing free champagne for customers at some of its high-end stores.
But the free alcohol could also refer to Summers, who threatened to withdraw the punch bowl of easy money if he were Fed chairman. Summers is an advocate of restraint who argues that the Fed should end its quantitative-easing (QE) plans.
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