Tuesday, October 26, 2010

End the Fed? Yes, but more needs to be done

... as the Czech Republic's President Václav Klaus points out in this October 18 speech, in which he attacks the International Monetary Fund (emphasis in the original):
I consider the IMF a barbaric relic from the Keynesian and fixed-exchange rate era. I know it is a harsh verdict but Keynes himself repeatedly used similar strong statements about his colleagues which
justifies my using such a terminology.

I am convinced the IMF should be dismantled or radically restructured as soon as possible. To do the opposite, to increase its role as it happened as a result of the last year’s G20 decision in the middle of the panic connected with the then looming crisis or to speculate about creating similar institutions on individual continents (especially in Europe) is a wrong way to go. It is yet another manifestation of a mistaken and dangerous global governance mindset which – to my great regret – has been getting more and more support in the intellectual and political circles these days. To whom and how at all can the IMF be held responsible for its activities? And if its proposals or measures turn out to be mistaken (and this can happen very easily), who will face the consequences? Certainly not the IMF.

The Czech Republic has provided two of the greatest statesmen of our time, Václav Havel and Václav Klaus. They experienced Communism, know how and why it has failed the people, and have led the Czech people to freedom. We would do well to listen to them.

Virtual buckeye to Brian at Repeal the 17th Amendment.

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