By Gary North
''Mises saw before anyone else the threat that Friedman's methodological mentor offered to liberty: the fiat money economics of Irving Fisher. Mises confronted Fisher in 1912 in The Theory of Money and Credit. Friedman did more than anyone else to revive academic interest in Fisher's central bank-based fiat money economy. He called Fisher the greatest American economist. Fisher was a catastrophe. He was the economist who, in September 1929, said that the stock market was at a permanent high plateau. He died penniless, having lost his own fortune and his sister-in-law's.
Equally illogical is the superstition that government can create prosperity by having Federal Reserve Chairman Ben Bernanke print more dollars. In the very short term, Friedman proved, excess money fools people with an illusion of prosperity. But the market quickly catches on, and there is no boost in output, just higher prices.''read more
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