Capitalism? Free Markets? Freedom To Trade?

Via Zerohedge.

Just the latest example of the absurdity brought about by this monetary system that cannot contemplate a diminishing cost of living.

Fractional Reserve Banking only allows expanding credit markets. As credit expansion slows or, Ye Gods!, stalls, government must necessarily and inevitably intervene. Government intervenes with subsidies, with protection of industries, with the granting of social benefits (student loans are a prime example) and with the imposition of taxes. Whatever form it takes, government intervention is aimed at increasing costs thus increasing the cost of living. Initially, intervention is cloaked in things like social justice and security for the less fortunate. But as the expansion of credit markets no longer brings about the nominal increase in asset values as it used to, government must necessarily intervene at the micro level at increasing degrees.

Till one day, the state intervenes to…

http://www.zerohedge.com/news/2013-01-28/guest-post-louisiana-grocery-store-forced-raise-milk-prices-state-regulators

 

Tags: cost of milk, fractional reserve banking