Will Grigg?s Liberty Minute

April 27, 2009

Dr. Gregory Mankiw served as chairman of President George W. Bush?s Council of Economic Advisors. In a recent New York Times column, Mankiw offered the patently insane suggestion that the Federal Reserve offer negative interest rates in order to stimulate economic recovery.

For example: the Fed could choose a random number and announce that within a year ?All currency with a serial number ending in that digit would no longer be legal tender.?

Within a year, ten percent of all currency in circulation would be worthless. This would permit the Fed to set a negative interest rate of, say, minus three percent in order to punish saving and promote borrowing and spending.

The only alternative, Mankiw insists, is for the Fed to continue inflating the currency, which will have the same impact.

This is what passes for wisdom in the upper echelons of our deranged ruling elite.

Let us take back the liberty wherewith Christ has made us free.