Speaking in this video, Steve Baker makes a point that cannot be made too often:
It’s a crazy thing. In most price systems or most parts of the economy, people understand that it’s wrong to plan prices. So here we are, we’ve had chaos in the credit markets, and the credit markets are centrally planned by a cooperating international network of central banks, committees of planners, who deliberately alter the height of interest rates. And we don’t make the connection that central planning causes chaos. And it’s just a really simple thing, and it’s true in money and banking and it’s true in everything else.
Making our case on financial matters can get difficult, because it can quickly get bogged down in arcane detail. Talking about the interest rate as a politically imposed price works well, because the idea is so clear and so straightforward.
Baker has just been voted onto the Treasury Select Committee. I know very little of the inner workings of Britain’s Parliament, but those who know better about such things I tell me that this is a very big deal. The Guido Fawkes blog certainly thought this circumstance worth a passing mention. This man is making headway.
When I first heard the newly elected Baker talking about what he hoped to accomplish, he sometimes sounded like he thought that the Keynesian/Quantitative Easing door was so rotten that it might only need a few good kicks to be destroyed. Well, hope springs eternal and this door was and is very rotten indeed, but it is also very powerfully defended. Baker now talks like a man who is definitely in for the long fight. Good.