Mises has argued that interventions in the market are unsustinable because they produce unintended side effects that must either be undone by abolishing the original intervention, or resisted with further interventions. The problem with the latter path is that the new policies intended to clean up the original mess produce problems of their own. Eventually this path will lead to a complete breakdown of economic activity if not abandoned. |  |
Jim Puplava’s commentary Unraveling posits that a number of unsustainable features of the current financial system — the over-valued dollar, the Feds’ ultra-low interest rate policy — are now starting to come undone. The “unraveling” that Puplava forecasts has been resisted by the Fed, which has succeeded in producing another series of asset price bubbles.
