David Stockman : Central Banking Refuted In One Blog—–Thanks Ben!

David Stockman reports :

During the prior 40 years, the US economy had grown at a 4% compound rate—the highest four-decade long growth rate before or since—- without any net change in the price level; and despite the lack of a central bank and the presence of periodic but short-lived financial panics largely caused by the civil war-era national banking act.

So in 1913 there was no conceit that a relative handful of policy makers at the White House, or serving on Congressional fiscal committees or at a central bank could improve upon the work of millions of producers, consumers, workers, savers, investors, entrepreneurs and even speculators. Society’s economic output, living standards and permanent wealth were a function of what the efforts of its people added up to after the fact—-not what the state exogenously and proactively targeted and pretended to deliver.

Please read the entire blog entry to see how wrong Ben Bernanke is.