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	<title>The Brothers Austrian &#187; monetary policy</title>
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	<link>http://www.brothersaustrian.com</link>
	<description>An economics blog in the Austrian tradition, written by two brothers, one teacher and one bond trader</description>
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		<title>Past the Point of No Return</title>
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		<pubDate>Wed, 06 May 2009 12:55:57 +0000</pubDate>
		<dc:creator>MisesBeliever</dc:creator>
				<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[business cycle]]></category>
		<category><![CDATA[credit]]></category>
		<category><![CDATA[economics in one lesson]]></category>
		<category><![CDATA[Hazlitt]]></category>
		<category><![CDATA[monetary policy]]></category>

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		<description><![CDATA[Jack Welsh&#8217;s on the Economy: Past the Point of No Return title describes how I have thought about monetary policy after I picked up on the Austrian Business Cycle Theory (his piece is a must read). We have gotten so out of control with credit expansion, by every measure, that I fear the consequences of [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2009/05/04/the-financial-commentator-on-the-economy.aspx">Jack Welsh&#8217;s on the Economy: Past the Point of No Return</a> title describes how I have thought about monetary policy after I picked up on the Austrian Business Cycle Theory (his piece is a must read). We have gotten so out of control with credit expansion, by every measure, that I fear the consequences of unwinding it. Again, think of the last pargraph of chapter 23 of Hazlitt&#8217;s <em>Economics in One Lesson</em>.</p>
<p><span style="font-size: 10pt; color: black; font-family: 'Georgia','serif';"><em>“Like every other tax, inflation acts to determine the individual and business policies we are all forced to follow. It discourages all prudence and thrift. It encourages squandering, gambling, reckless waste of all kinds. It often makes it more profitable to speculate than to produce. It tears apart the whole fabric of stable economic relationships. Its inexcusable injustices drive men toward desperate remedies. It plants the seeds of fascism and communism. It leads men to demand totalitarian controls. It ends invariably in bitter disillusion and collapse.”</em></span></p>
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