Date: 5 March 16
By: Frank Gue, B.Sc., MBA, P.Eng.,
2252 Joyce St.,
Burlington, ON L7R 2B5 905 634 9538
For: Editors, Macleans
Re: Interest rates less than zero, March 7 edition Letters
One of the main criteria of a Marxist-communist economy is the lack of a sound price mechanism.
This is because no bureaucrat can figure out the “right” price for anything. The “right” price for
any good or service is whatever a willing, informed buyer in a free market will pay for it.
Despite this fact, generations of the world’s central bankers, including the esteemed Mr. Poloz,
have applied pure Marxist price-fixing to one of the most important elements of our Western
free-market economies; our interest rates, the price of money.
The Chinese have been moving toward free interest rates for some time. Perhaps, as often, the
Chinese know something we don’t: A free interest rate, appropriately regulated, would help
to smooth out the boom-busts in our largely Monopoly®-money based financial system.