I’d Rather Invest in Taylor Swift Than the U.S. Government

Taylor Swift (photo credit: Jana Beamer via Flickr, CC BY 2.0)

When I sat down to read John Tamny’s fantastic new book — Who Needs the Fed? — I expected a tome about the errors taking place at the Federal Reserve, specifically in regard to zero-interest rate policy and quantitative easing.

And yes, in some respects, Tamny fulfilled that expectation. But Who Needs the Fed? digs into big picture topics that are far more relevant to our daily lives than esoteric concepts such as money supply, M1 and M2, capital requirements, liquidity, and — hey, wake up! — I promise you, this isn’t that type of book.

Instead, Tamny has formulated a revolutionary new way to understand the economy. Who Needs the Fed? will lead you to question everything you thought you knew about the federal government’s role in our daily lives. It will also make you skeptical of what you hear on TV from so-called “experts”.

Who Needs the Fed? is an incredible read, even if you don’t have much of a knowledge base about economics. Tamny uses pop culture and the world of sports to describe complicated concepts and make them easy to understand. Some of these topics — I mean seriously, we’re talking about monetary policy here — have no business being exciting. And yet Tamny manages to bring them to life in a way that makes his 202 page book positively engrossing.

Credit is the central concept of Tamny’s book. “Credit,” Tamny writes repeatedly, “is not money.” Instead, it is “always and everywhere the actual resources — tractors, cars, computers, buildings, labor, and individual credibility — created in the real economy.”

To illustrate the meaning and value of credit, and why it exists as an independent phenomenon unaffected by central planners at the Federal Reserve, Tamny uses more than a dozen real-world examples.

Continue Reading

‘What Taylor Swift, Uber, and Robots Tell Us…’

Taylor Swift (photo credit: Jana Beamer via Flickr, CC BY 2.0)

So, as the headline has it, begins the subtitle of John Tamny’s latest book, Who Needs the Fed? It might have been even more aptly titled The Emperor Has No Clothes. It explodes the myth that government agencies, especially the Federal Reserve System, can be a force for prosperity and with justice for all.

John Tamny herein provides the recipe for an American Economic Miracle. Those who find the Fed a soporific subject need not recoil. This book (full disclosure, in which I generously am noted in the acknowledgements) is about people.

It is all about how innovation of, by, and for the people, not the government, is the true engine of equitable prosperity.

Tamny has been handsomely praised by George Will as “a one-man antidote to economic obfuscation and mystification.” Steve Forbes writes of his new book, “Like a blazing sun melting away a dangerously thick fog, this delightfully written, well-argued and insightful book.… It will become one of the most enormously — and positively — influential treatises of our time.”

Two score and seven years ago our forefathers — Jack Kemp, Robert Mundell, Arthur Laffer, Jude Wanniski, Lewis E. Lehrman, and Steve Forbes, among others — brought forth upon this continent a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal. Supply-side economics proved a powerful remedy for stagflation and for the creation of an era of historically unprecedented equitable prosperity.

Continue Reading

Ending Monopoly Money

Photo credit: Andrew Gustar via Flickr (CC BY-ND 2.0)

John Tamny’s new book Who Needs the Fed? is richly praised by such towering figures as George Will, who observes that “John Tamny [is] a one -man antidote to economic obfuscation and mystification,” and by Steve Forbes, who writes of it, “Like a blazing sun melting away a dangerously thick fog, this delightfully written, well-argued and insightful book clears away disastrous misconceptions about money, credit, and the operation of the Federal Reserve. It will become one of the most enormously — and positively — influential treatises of our time.”

Among many noteworthy thoughts contained in this book the chapter entitled The Money Supply Myth, pp. 144-145, contains the following trenchant observations:

Perhaps an even better solution (to the problem of dollar policy) would be for Congress, once again, per the Constitution, to simply define the dollar (let’s again assume at 1/1000th of an ounce of gold), only to leave the creation of actual money to the private sector. That was von Mises’s point when he observed that absent government-issued money supply, “commerce will create for itself other media or circulation, such as bills, which will take the place of notes.” Austrian thinkers have long argued in favor of competing private currencies. Assuming a legal definition for the dollar, it’s folly to assume that private issuers wouldn’t create a dollar measure redeemable for 1/1000th of a gold ounce.

[…]

[A]rguably the best answer in light of the U.S.Treasury’s sad oversight of the dollar in modern times is to fully legalize private money without any Treasury or congressional input.

Continue Reading