The business cycle is caused by artificial credit expansion by the central bank and commercial banks too—if the reserve requirement is less than 100 percent.  All sorts of excuses will be pushed, but none are true, don’t believe them.  To believe them is a will to delusion.  They’ll keep pushing false ideas because to renounce false ideas would be to renounce life.  Truth is dangerous.  Credit expansion will cause the interest rates to fall and misdirect resources.

Many are astute defenders of other’s lies.  Printing money doesn’t create new goods.  It’s impossible that the standard of living can be increased by one iota.  “Social wealth,” as they say, can’t be increased.  It’s impossible.  The only thing that can be done is to redistribute resources to the early receivers of the new cash.  It’s time that we understand the business cycle.  Of course, belief in truth is necessary.

To believe the business cycle is caused by speculators, or whatever else they push, is to take the side of criminals.  Everyone who can’t predict the future is a speculator.  Entrepreneurs are led to believe there are more resources available.  This will cause them to invest in goods that don’t line up with the time preferences of the people.  What was unprofitable prior to the credit expansion now seems profitable.

Behind all thinking are valuations.  People have valuations that are distorted by the credit expansion.  Interest rates are an indispensable signal.  People will do what they value most first.  Investment is taking place in the wrong areas and entrepreneurs are unable to meet the valuations of consumers.  If consumers valuations are not met, they are distorted.  We are told this will help the economy.  Sympathy is their favorite disguise.

There is no impulse to knowledge.  There are just extraordinary stage plays and self-deluders.  They’ll never admit they have sick souls.  They adopt a popular prejudice and exaggerate it.  The business cycle is only caused by bank credit expansion and nothing else.  It redirects resources.  The free market will revert to the preferred ratios.  There’s an inward certainty that obedience is necessary.  Don’t fall prey to this perversion of facts. 

References

Murray Rothbard; Man, Economy, and State

Friedrich Nietzsche; Beyond Good and Evil