Abolish the Bank of Portugal Before It Causes More Damage

Free-marketers are quick (and correct) to blame the Fed for America’s monetary troubles. But as bad as the Federal Reserve is, other countries, like Portugal, have corrupt central banks that rival the Fed in its corporatism, inflationism, and irresponsibility.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

In 2009, Ron Paul laid out his argument against the Federal Reserve, identifying it as the primary wrongdoer behind the inflationary nightmare that has been maiming the American people’s purchasing power for decades. This is the result of easy money policies that generate boom-bust cycles within the economic order, leading to recessions weeding out unprofitable ventures. His solution is simple: abolish the Fed, and considering the implications of his ideas, I propose something similar that nobody has yet proposed in this rectangular corner of the Iberian Peninsula: axe the Bank of Portugal.

Every government promises to fight inflation, yet the cost of living perpetually rises. This trait isn’t unique to our democratic period, as both the Estado Novo and the First Republic followed these same disastrous recipes. Ideology matters little, so long it supports the constant growth of the state. Policymakers will blame climate change, conflicts in Ukraine and the Middle East, or Trump disrupting international trade by protecting national industries. There is always a scapegoat to deflect their own shortcomings.