Thursday, October 30, 2008

Larry Sechrest 1946-2008

I was terribly sorry to hear today that Larry Sechrest has died. My heart goes out to his wife, Molly, whom I have known for many years.

Larry was the author of Free Banking, a book which argued that government-run central banking is a bad thing.

From a summary:
Central banking accepts all the methodological precepts of socialist central planning. It is constructivist. The planners pretend to know more than they can know. They presume that their knowledge is better than the market. They use their power to override market signals of prices and interest. And the results are about as successful as socialism...
How can this be?  We are told constantly that the Fed's mistakes are a "failure of capitalism."  

Could it be that the Fed and its Chair
wouldn't exist under laissez-faire?

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