This is a time to put dogma and politics to one side and concentrate on pragmatic answers. That means more government intervention and co-operation in the short term than taxpayers, politicians or indeed free-market newspapers would normally like.FDR's Brain Trust couldn't have said it better. If you understand Austrian economics, which is virtually ignored in the MSM, you know that "more government intervention" merely augments the policies that brought us to this point. The Federal Reserve boosted Total Fed Credit by another $245.4 billion last week, while increasing the Monetary Base to $984.717 billion, up from $911.454 billion the previous week. The Fed and ECB are expected to cut rates to provide even more liquidity, while Iceland, taking the opposite approach, has pushed interest rates up to 18 pecent.
We continue to be reminded of Captain Bernanke's immortal words, as he guides the U.S. economic ship ever downward: "But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost."