Savitri Era of those who adore, Om Sri Aurobindo and The Mother.

Wednesday, September 17, 2008

Where The State guarantees profit, there cannot be anything like a free market

On the Great US Crash from ANTIDOTE by Sauvik

There can never be any guarantee of profit in a free market. Any such guarantee constitutes a “moral hazard,” and promotes reckless behaviour... With government bailouts, this course correction never happens. It is back to crooked business as usual...

The US government is not a good poster-boy for free markets. All the good work done by libertarians in promoting free markets and free trade in India is in danger of being undone. We should blame the crash on the Keynesian fiat money system run by The US State. After all, where The State guarantees profit, there cannot be anything like a free market, in which losses must be made booked too.

The globalizing world needs a sound monetary system. I am glad that this point of view is emerging strongly in America – thanks to Ron Paul. Sound money based on gold is the only way out if we want to secure a stable prosperity. The Crash is happening because of The State. So don’t blame it on the market. This is not what would happen in a truly free market scenario. And don’t call for “more regulation.” Call for sound money – and the abolition of the Fed.

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