Central Banks and individuals don’t. The other main difference between governments and individuals is that governments are much stupider. This is because governments have Central Banks to fund their stupidity. Individuals are forced to be “fiscal conservatives.” If we become ridiculously indebted far beyond our ability to repay, we lose the house, the car, and the boat.
By permission Michael Ramirez and Creators Syndicate, Inc.
Individuals are required to have a sensible “macroeconomic policy.” It’s fine for the Fed to ruin whole sectors of the economy by creating an immense pool of assets that only exist on paper. But when an individual does that, he’s Bernie Madoff. Individuals are constrained by a cautious and moderate “foreign policy.” An individual can’t afford to invade a neighbor’s home. He’ll be shot (especially up here in rural New England where I live). Individuals don’t have the assets to damage the social fabric with public policies that turn inner cities into war zones. The only individuals who have those kinds of assets are drug lords... and they get arrested. So... I wonder. If I had my own Central Bank and the unlimited power that an unlimited amount of money would give me, would I start to become as stupid as a government? What’s to stop me? Regards, P.J. O’Rourke
going, “ Grrrrr... ” That’s one more thing Central Banks do – facilitate government debt and deficits. In fact, harking back to King Billy in 1694, that’s all Central Banks do. And I’ve got plenty of debt and deficits already and don’t need any more. Also note that, per King Billy, the debt and deficits always seem to be used to finance bad ideas such as a Nine Years’ War with France. Or nowadays, massive entitlement programs that devastate work ethic, destroy family ties, and strip people of their personal responsibility and self-respect. In my case the debt and deficits would probably finance a Harley-Davidson. At my age this would quickly turn me into a “rolling organ donor.” Which makes me wonder whether having my own personal Central Bank is such a good idea after all. The main difference between governments and individuals is that governments have
8 | June 2017
Made with FlippingBook flipbook maker