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Source link: http://archive.mises.org/12817/the-fine-print-of-central-banking/

The Fine Print of Central Banking

May 27, 2010 by

Economies are not built on cash. Automobiles are not fabricated out of money. Families do not eat paper. By printing money, Venezuela’s central bank and government are not creating capital, they are only funding their ability to bid it away from the private sector. FULL ARTICLE by Jonathan M. Finegold Catalan


Bogart May 27, 2010 at 11:45 am

The benefits of “Democratic Socialism” and central banking.

Tim May 27, 2010 at 3:04 pm

Mark Weisbrot holds that Venezuela is poised to “pursue a robust economic expansion.”
Right. That explains why the CDS market is pricing Venezuela at 1487 basis points, more than twice the price of insuring Greek debt (717 bp).

Frank G May 27, 2010 at 9:45 pm

I am getting so tired of neo-Keynesian economists telling people this and that is not Greece, as if quantitatively one can be Greece by simply reaching some pre-determined point of having too much debt. The lesson of Greece is that NO pre-determined point of having too much debt exists and that when credit markets dry up and lending standards change, what was acceptable yesterday may not be today. Any country that needs debt to function can be Greece, if no one is willing to lend it money.

Of course, the reality is that if you have your own central bank, something Greece does not, your chances are better for becoming the Weimar Republic then Greece.

Jonathan Finegold Catalán May 28, 2010 at 4:37 pm

One of Mark Weisbrot’s peers brought a mistake to my attention. I misinterpreted Weisbrot’s comments on the lack of an inflationary spike after the January 2010 devaluation as him saying that there was low inflation. Weisbrot does refer to Venezuela’s high inflation in the article (the article is linked in my piece). One can read the entire correction on my blog: Correction to Article on Venezuela. It’s worth noting that the inflation rate did increase substantially after Chavez devalued the currency, however.

newson May 28, 2010 at 11:55 pm

you own your tongue, but not this website. in the same way, your freedom of expression doesn’t mean that you can barge into barack obama’s office and start talking to him. my, your, and others’ comments can be deleted because this is a private space.

chavez’ regime takes a proprietorial view on public opinion. when mises.org starts militating to shut down dissenting economic blogs, then the comparison will be valid.

J u a n G a r o f a l o May 29, 2010 at 3:06 pm

“Not only have Venezuelans been deprived of their right of free speech, ”

This has got to be a stupid joke no? You are the same people who ban users from ‘your’ forums when they don’t toe the party line remember?

“I’d like to differentiate between “free speech” as a right and “free speech” as a privilege. ”

You either stick to your (wrong) party line “all rights are property rights”or you DON’T. You can’t switch definitions as you please. The thing is, you are a demagogue who invokes “freedom of speech” in public when it suits you but then are willing to behave like a petty tyrant when being a tyrant is the ‘proper’ means.

I see that my comments have been censored yet again? This is really lame. Some people invoke freedom of speech when they can score a couple of points by doing so, but are willing to throw freedom under the bus when they feel that’s the ‘proper’ means to achieve their ‘ends’.

newson May 29, 2010 at 9:59 pm

you can indeed be a tyrant in your home without contradicting libertarian values. but your despotism ends at the front door.

Jonathan Finegold Catalán May 29, 2010 at 10:21 pm

Newson,It’s not worth arguing.Honestly, this is more drama than I bare to withstand, especially for such trivial a matter. I’m sorry Juan that you were banned from what is apparently your obsession. You’re right, I am a tyrant and I breached your right to free speech (the fact that you voluntarily posted on the forums, and therefore agreed to the rules, is completely besides the point, of course). I’m sorry that I wronged you and ruined your life.

Because I am not willing to sacrifice my love for writing (even if I may not even be that good at it) and I certainly don’t want to be heckled by people looking to troll or start drama where it really doesn’t matter enough to start it, I’m no longer a moderator on the Ludwig von Mises Institute forums.

It’s a pity that my article has to be stained by this type of conversation in the comments section. I mean, honestly, how idiotic must this debate look to someone who has no idea on what we’re talking about! But, I’m probably overreacting anyways.

I hope that future moderators fulfill your idea of justice, Juan. But, you should also consider that there is a life outside of these forums and the Mises IRC channel, and there’s more to said life than heckling the people that you believe wronged you. I invite you to go enjoy it.


Vanmind May 31, 2010 at 10:17 pm

A main point made in the article is that it is only under despotic criminality like Chavez’s Venezuela that lowlifes even begin to pretend that they get to tell private institutions like mises.org what they can and cannot say/publish. Clue in, dimwit.

J u a n G a r o f a l o. May 30, 2010 at 4:28 am

Catalan, you never addressed your mistake regarding the “right to free speech”. Maybe you should do that, instead of calling me a troll?

“the fact that you voluntarily posted on the forums, and therefore agreed to the rules,”

It doesn’t follow. You are wrong, yet again – I didn’t agree to any stupid rule.

Vanmind May 31, 2010 at 10:18 pm

So this blog “belongs” to everyone? Guess again, chump.

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Jonathan Finegold Catalán May 28, 2010 at 2:58 pm

Juan,At the risk of inviting more of your trolling, I’d like to differentiate between “free speech” as a right and “free speech” as a privilege. In Venezuela, Hugo Chavez infringes on free speech by denying others of their property rights. The Mises forums are private property. By voluntarily posting on them you agree to set of rules, as defined by the “owners” (ownership in this case is deferred to the moderators, since they are charged with running the forums).You broke the rules by being consistently rude and insulting. That is why you were banned. Not because you didn’t “toe the party line”.I would kindly prefer that you didn’t troll the comments thread to my articles. It definitely will not get your point across (if you even have a real point to get across).

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