Milton FriedmanMilton Friedman, (1912-2006) Nobel Prize-winning economist, economic advisor to President Ronald Reagan, "ultimate guru of the free-market system"

Milton Friedman Quote

“The power to determine the quantity of money... is too important, too pervasive, to be exercised by a few people, however public-spirited, if there is any feasible alternative. There is no need for such arbitrary power... Any system which gives so much power and so much discretion to a few men, [so] that mistakes - excusable or not - can have such far reaching effects, is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic - this is the key political argument against an independent central bank.”

Milton FriedmanMilton Friedman
~ Milton Friedman

Ratings and Comments

J Carlton, Calgary

And the markets just keep sliding. Looks like the Bail Out Band Aid wasn't enough to keep the patient from bleeding to death. Will we ever learn?

Waffler, Smith, Arkansas

"If' is a big word, and not to mention "feasible alternative". If Milton is so smart why dosen't he say something positive and give an alternative, feasible or not, rather than just bad mouthing the apparent only thing we have. I say apparent because independent central banking is a world wide phenomenon.

jim k, austin

More Waffler non- sense. The unfortunate fact that central banking is "a world wide phenomenom" doesn't make it any less dangerous.

Waffler, Smith, Arkansas

Jim K will you answer my question about whether or not the IRS is incorporated, and is it incorporated in Puerto Rico, and does it matter? You are so great at knowing what is nonsense you should be able to handle that. I repeat Milton here is just throwing up a bunch of hot air, obviously to date there has not been any feasible alternative offered. If he any you are so smart why do you not offer a feasible alternative. This the problem with you radical types, you don't have anything to offer. You just know that you hate everything, misanthropes that you are.

Ken, Milford Pa

Will we ever learn? Yes, we the people knew all along that the bail out was a sham and would not work, and we were proven correct. it is the senators and congress that was too stupid of crooked to do the right thing. Now, everyone, everywhere, find out how your so called representitives voted. All that voted to approve the bail out, make sure that they never hold public office again. Those that did the right thing and voted no, thus serving the people, be sure that they get re-elected. We need to get active and take back our country. Do not let up. And by the way, the IRS is illegal. A law was never passed that allows the IRS to even exist. Watch Freedom to Facism editors authorized version and learn the truth.

warren, olathe

Only a misanthrope would support liberal politics. You would have to hate the poor and disadvantaged to agree with the policies designed with the intent to keep them that way.

Ken, Allyn, WA

Central planners never make their plans for the benefit of the people, they simply plan on controlling the people; and I don't accept that any of them are high minded or public spirited. It doesn't matter if the planners plan the financial system, industrial production, food production, or anything else. It is always about taking free choice away from individuals and controlling their behavior for the planners' benefit. Liberalism is the ultimate social disease.

Dave Wilbur

The Federal Reserve admitted on page 3 of Modern Money Mechanics that they operate a confidence game and that the history of banking is a history of fraud. So you want an alternative Waffler? There is only one other possible system which was a barter system of gold and silver coins mandated by the Constitution that was set aside "in the public interest" before the that day of infamy in 1913 when a quorum of just passed the Federal Reserve Act. Prove your idiocy by saying there isn't enough gold and silver when their scarcity makes them ideal for bartering.

E Archer, NYC

Waffler, since you are a unabashed proponent of government regulation, why shouldn't the US Treasury regulate the amount of money it can spend every year? Why has the responsibility of the Treasury been given to a private company that uses that monopoly to bankrupt the nation? I don't know why I bother answering your question because it has been answered so many times with nothing but contempt from you. What is the answer? How about following the Constitution as is required by LAW? Where are our dollars of gold and silver that were authorized and required by our Constitution? Why are they not in circulation? Where did they go? The solution to the economic problem is simple -- return to REAL money, put strict limits as to how much the government may borrow (i.e. how many T-bills they may sell). Business obviously needs cash and credit. But as in real life, when trading goods and services, it is up to the seller/laborer to decide whether to extend credit or not and receive the speculative gains from the interest or bear the losses should the promise not be kept. We must not be forced by statute to accept promissory notes in lieu of cash. Our 'hard currency' could be a breadbasket of hard commodities like gold, silver, and water, held in trust by the Treasury. Our currency would be certificates representing real commodities. Our 'soft currency' (i.e. credit, promissory notes) would be put into circulation the same way as now EXCEPT that the US Treasury would issue these notes (instead of a 'Federal Reserve'), and the interest paid on them would pay for our government services since the profits from issuing a debt currency would be received by the Treasury instead of the Federal Reserve. The 15 trillion in debt would be for the holders of the credit currency that would naturally inflate over time and would tax all users of that currency equally -- those using hard currencies would not be affected. The soft currency's value would float against that of the hard currency, just as currencies do today. Let the states raise their own revenues with sales taxes as they were supposed to do. There you go, Waffler. No income taxes, no debt except those using credit currency, a Treasury FLUSH with funds, health care, strong defense, education, social safety net, etc.. The challenge is that those with the real money and power right now will use all their resources to keep the shackles upon us, so it could not be achieved without a fight -- and the current Congress are the lap dogs of the central bankers and their legions of offices and agencies. But if and when the people of the world can understand the simplicity of the con, they will tear down these despotic institutions, confiscate the wealth stolen from them, and rid the world of the tribute and protection money we have been paying these bastards for TOO LONG. This is the next revolution and renaissance, and I do believe it is unstoppable now -- maybe not in my lifetime but eventually.

Ken, Milford Pa

Archer, right on the money. Excuse the pun. Thank you for the comment and God bless. Yes, I do believe that our hand is forced and now cannot be stopped. I actively campaign and everyone is furious. They want justice and want it now. They are in no mood to be placated.

Margot J. D., Glen Ellyn Illinois

Archer, brilliantly expressed. May I add the result we are feeling of not having our currency tied to a gold or silver standard is a complete lack of confidence in our system? My father was chairman of the Chicago Fed 2 terms under Alan Greenspan and he would agree with you completely.

J. Allen, Arlington, Va

The only thing worse than what Friedman describes is the situation we now have with independent bankers from various nations working in concert without oversight of the public.

Mike, Norwalk

I don't know if this is the key political argument against an independent central bank BUT, it is an extremely accurate and very strong argument. Waffler, I have seen the original IRS incorporating docs in the US - only to go inactive. There is no enabling act authorizing, making legal or legitimizing an IRS. There is an enabling act for a Director of IRS but it does not mention what any "Service" may or may not do. The IRS is legally a ? ? ? (abomination collecting the noble laborer's fruits as henchmen for self descriptive carnal gods)

J Carlton, Calgary

Further to my comment above, it's come to light that the massive GM bail out was used to move 70% of GM's production to China. Way to save American jobs "Big Government" assholes. I'll be driving Ford's for a long time...

dick, fort worth

A fool and a scoundrel.

Bruski, Naples FL

Why does the Fed refuse to be audited?

Answer: they have much to hide.

Audit the Fed and report all the details to the American public. My guess is that IF it is done we will be shocked by the fraud & abuse.

Ronw13, Oregon

The New Administration's Economic Counselors should take a HARD LOOK at Archer's statement, and advice ! Deregulation only goes so far, as with tax cuts. President Trump Has One Shot to get this Course Correction Right, for We the People, for our children's sake. American Patriots !


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