Since real savings enable the production of capital goods, obviously real savings are at the heart of the economic growth that raises people's living standards.
In the blurry world of conflicting economic indicators and forecasts and policy surprises, activist policymakers at the Fed do not know exactly what the “right” monetary policy is today. Neither do their activist critics.
Real GDP does not measure the real strength of an economy, but reflects monetary turnover. Thus, the more money is pumped, the stronger the economy appears to be.
The tactics used by central banks don't just create bubbles or drive up prices. They actively destroy value and act as a tax on real producers in the economy.
Loose monetary policy can appear to work so long as real wealth is expanding. But money expansion weakens wealth creation over time, eventually leading to slower growth, lost wealth, and economic busts.
Joe Weisenthal is questioning whether people should be able to deposit their money in a checking account and be paid interest on it — Rothbardians have been saying that for decades.
The introduction of money does not alter the fact that individuals still have to produce something useful in order to secure some other useful goods for themselves.
