web analytics
September 21, 2014 / 26 Elul, 5774
At a Glance
Blogs
Sponsored Post
Apartment 758x530 Africa-Israel at the Israel Real Estate Exhibition in New York

Africa Israel Residences, part of the Africa Israel Investments Group led by international businessman Lev Leviev, will present 7 leading projects on the The Israel Real Estate Exhibition in New York on Sep 14-15, 2014.



Enough with the Praise for Stanley Fischer and Israel’s Central Bank

There should be no central bank which regulates the supply of money.
Stanley Fischer

Stanley Fischer
Photo Credit: Yori Yanover, based on image by Miriam Alster/Flash90

In a free market for money, the best, most efficient, and most honest money coiners will get the most business and have the most coins circulating on the market. Those coining companies that cheat and lie about the purity of their coins will lose business and go bankrupt. Their coins will not circulate, or they will circulate at a discount.

In a free market for money, the best, most efficient, and most honest money receipt issuers (currency printers, private banks) will store the most money and issue the most currency. Those private banks that cheat and lie about how much silver or gold they have in their vaults to match the receipts and “inflate” their currency will lose business, inspire their receipt holders to call in their receipts for silver and if they can’t provide it, they will go bankrupt. Their currency will not circulate, or it will circulate at a discount..

In a free market for money, you will have several different competing currencies and coinages, with people accepting the ones with the best reputations and rejecting the ones that are unreliable.

Interest rates and prices will remain stable as money supply and money demand equilibriate, and as in any developed economy, goods and services will increase faster than the supply of money, allowing for a gently falling price level and everyone to get richer in real terms.

Or you can have someone like Stan the Shekel Man Fischer in charge, printing sheets of paper backed by absolutely nothing, causing prices to continually rise and government controlled money to continually lose value, making everyone poorer and more miserable.

Stanley Fischer did not save the Israeli economy from collapse. He simply did not abuse the insane power given to him as badly as other central bankers did: the monopoly power to print money. This power, incidentally, was given to him in much the same way as our fictional Stan Shoemaker’s was given to him: By a bully state ready and willing to arrest anyone besides Stan who manufactures shoes. Or in this case, money. And why would the Israeli government forbid anyone but Stan their goon from manufacturing money? Because when you have control over the entire money supply, you can spend it on anything…you…want. Like welfare. And leather seats for Knesset members. And armored cars for party heads. And first class trips to France for Defense Ministers. And subsidies to ignoramuses who you want to vote for you. And huge campaign posters and TV ads and God only knows what else.

When one man controls the shoe market, the quality of shoes goes down and everyone who wears shoes, suffers. When one man controls the money market, the quality of money goes down. It loses value. It makes you poorer.  Everyone who uses money, suffers.

Every single time a national/federal/central bank prints money with the flip of a switch, it steals from people like you and me who have to work to earn our money.

Visit Settlers of Samaria.

About the Author: Rafi Farber blogs at SettlersofSamaria.org.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

4 Responses to “Enough with the Praise for Stanley Fischer and Israel’s Central Bank”

  1. Charlie Hall says:

    "maybe he’s just some guy who has no idea what he’s doing".

    It is this blogger who has no idea what he is doing. Using only precious metals for currency was a disaster worldwide, producing financial panic after financial panic, ruining the lives of millions each time. Winston Churchill later admitted that putting the UK back on the gold standard was one of his worst mistakes, as it helped to precipitate the Great Depression — which helped to precipitate the rise of the Nazis. And the ideas here are more extreme than any proponent of gold standards; he would eliminate government involvement completely and allow private interests — think George Soros — to make a killing by controlling the supply. Small countries in particular, such as Israel, would be at the mercy of such.

    Stanley Fischer justifiably gets a significant part of the credit for saving Israel from the consequences of the 2008 Crash, a crash caused largely by the removal of government involvement in financial regulation in most countries — but not Israel. Furthermore, the author shows his ignorance through this statement:

    " government controlled money to continually lose value".

    In fact the Shekel is worth more now than eight years ago when Fischer took over.

    Can't the *Jewish Press* do better?

  2. Charlie Hall says:

    "maybe he’s just some guy who has no idea what he’s doing".

    It is this blogger who has no idea what he is doing. Using only precious metals for currency was a disaster worldwide, producing financial panic after financial panic, ruining the lives of millions each time. Winston Churchill later admitted that putting the UK back on the gold standard was one of his worst mistakes, as it helped to precipitate the Great Depression — which helped to precipitate the rise of the Nazis. And the ideas here are more extreme than any proponent of gold standards; he would eliminate government involvement completely and allow private interests — think George Soros — to make a killing by controlling the supply. Small countries in particular, such as Israel, would be at the mercy of such.

    Stanley Fischer justifiably gets a significant part of the credit for saving Israel from the consequences of the 2008 Crash, a crash caused largely by the removal of government involvement in financial regulation in most countries — but not Israel. Furthermore, the author shows his ignorance through this statement:

    " government controlled money to continually lose value".

    In fact the Shekel is worth more now than eight years ago when Fischer took over.

    Can't the *Jewish Press* do better?

  3. Rafi Farber says:

    Charlie, you seem to attack most things I write. First, you should understand that I am a anarcho-capitalist libertarian. I do not believe in the right of States qua States to exist, so obviously they should not run the monetary system. Just to clear up you facts a bit, the biggest financial panics ever (great depression, great recession, the soon to be great economic explosion and collapse of all currencies) have all occurred under Federal Reserve Hashgacha, the epicenter of fiat money. Winston Churchill's mistake was not putting Britain back on the gold standard. It was putting Britain back on the gold standard at 4.86 per pound instead of 3.5 per pound in an attempt to deny that they had been inflating the pound. This meant they were back on a gold standard with more pounds than gold. As for George Soros, there is no man who hounds for fiat currency and inflation more than him. When the Fed prints garbage, he's the first one that gets it, because it all goes to Wall Street first.

  4. Rafi Farber says:

    And the Shekel is certainly not worth more now than 8 years ago by any stretch of the imagination. It is stronger relative to the dollar, which is weakening even faster, yes, but in terms of what one can buy with 100 shekels, the purchasing power in terms of actual goods and services continually erodes and will keep doing so as long as governments are in charge of printing them.

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
ISIS executioner holding British aid worker Alan Henning as a hostage.
Muslims Plead with ISIS for Life of UK Aid Worker Alan Henning
Latest Blogs Stories
Doug Goldstein

Why some countries are more economically successful than others? Tune in for the answer…

ethics

If not scared by God be scared by man; Hopefully ethics will integrate into lives for proper reasons

rgds

Smear campaigns by people with agendas other than justice do not faze him; He does what is right.

Even Muslims -- including a number of groups one might consider to be quite radical -- are distancing themselves from ISIS and declaring the group to be apostate.

Countries like Turkey, Europe and even the US have proven fertile ground for recruiting terrorists

How many times have you heard anti-semites spew words like Israel are Nazis, or what you are doing to the Arabs is worse that what the Nazis did to the Jews?!…

My blog, Israpundit, was hacked, and I had to move to a new domain…

There’s much confusion about the definition of Daas Torah; simply put it means the wisdom of Torah.

We’ll never be able to negotiate a true, lasting peace with the Arabs.Their aim is our destruction.

Now I live in a country where every shop in the food court is kosher! I can have anything I want!

Pashkevil: “Come out today and battle the Zionist Amalek and all the traitors in Nahal Haredi…”

Jordan: Only M.E. country with no historical basis and ruled by occupiers placed by European powers.

Why is an IRA a worthwhile account for retirement? And how can you use it to the best advantage?

Like the fighter pilot’s letter, I wonder if certain units are simply too sensitive to allow certain leftwingers to serve in, and to entrust in their hands the security of our country and our lives.

There is only one thing more tragic than experiencing a terror attack, and that is allowing those who attacked you to do it again!

Smuggling Gazans into Europe is cheaper than fighting with Gaza, and then rebuilding all the destruction.

This week’s parsha offers a new covenant; a covenant that speaks to national life unlike any other

More Articles from Rafi Farber
investing-in-gold_4548807_lrg

We would see a massive transfer of wealth away from the banks and the government and the stock market and real estate which will all crash and back to the wage earning middle class who would then be earning gold.

Ron-Paul

People, we are being hoodwinked. No matter what the government says, the government does not define marriage, nor can it.

The finance minister will be me and only me, and I will cut everyone’s budget by 100% and return all the money to the taxpayers who it was stolen from.

In an interview with Galei Yisrael radio station, Likud MK Moshe Feiglin hinted he has a secret plan to help free Jonathan Pollard.

All Feiglin really should say is that the gay community should do whatever it wants, raise its own money, and stop trying to legislate laws which cost money and force unwilling people to pay for something they don’t believe in.

There should be no central bank which regulates the supply of money.

Bibi wants the smallest Likud possible while still maintaining his PM seat.

There is nothing qualitatively different between a trillion dollar coin, and a one dollar bill.

Printed from: http://www.jewishpress.com/blogs/settlers-of-samaria/enough-with-the-praise-for-stanley-fischer-and-israels-central-bank/2013/02/03/

Scan this QR code to visit this page online: