They Pledge Allegiance to the Fed, and to the Easy Money for Which It Stands

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A friend reports hearing the editor of Reason on October 29 on Pajama TV’s Washington Watch. “While expressing skepticism of the financial bailout, the man said: ‘Liquidity injections, everyone agrees, are necessary and proper.’

“Huh?,” says my friend. “What does it say when the editor of perhaps the most prominent libertarian magazine believes we need a central bank printing more money to get us through a crisis, the roots of which lie in cental banking fiat money in the first place? And this is not some obscure academic point, but a fundamental precept at the core of libertarianism, right up there with the non-aggression axiom.”

Well, I explained, Reason and all the other “libertarian” orgs funded by the Koch Brothers must take a pro-Fed position, to get the dough. Thus the continued defense of Greenspan at Cato, the feting of Bernanke and other central bankers, etc. Indeed, the Koch Brothers broke with Ron Paul almost 25 years ago when he refused to defend the central bank.

UPDATE See a slight quote correction.

6:54 pm on November 6, 2008