Quantitative easing, the program of asset buying initiated by the US Federal Reserve Bank in 2008, represents the most profound monetary experiment in the history of the world. Between fall of 2008 and fall of 2014, three successive rounds of QE quadrupled the monetary base of the world’s most-used and dominant currency, from less than $1 trillion to more than $4 trillion. The Fed literally created new money, bought Treasury debt and mortgage-backed debt (of dubious character) from commercial banks, and credited them with new reserves.

The average square footage in new single-family houses has been declining since 2015. House sizes tend to fall just during recessionary periods. It happened from 2008 to 2009, from 2001 to 2002, and from 1990 to 1991.

But even with strong job growth numbers in recent years, it looks like demand for houses of historically large size may have finally peaked.

According to Census Bureau data, the average size of new houses in 2017 was 2,631 square feet. That’s down from the 2015 peak of 2,687.

The Federal Reserve Board of Governors today released a new report today noting changes in net worth for households and nonprofit organizations.

As a result, the Drudge Report featured, at the page top, the headline “ Households see biggest decline in net worth since the financial crisis... “

According to the Federal Reserve’s Underlying Inflation Gauge, the 12-month inflation growth in January 2019 was at 2.9 percent.

In addition to being a libertarian in political philosophy, I am also a member of the Austrian school of economics.

With the US–China trade war and the Brexit dealings making headlines around the world, debates about international trade are at a high point. Unfortunately, those wishing to turn to the theory of international economics for support and enlightenment on these issues will find themselves disappointed. This field is perhaps the epitome of the much-despised “ivory tower economics,” as it is now severed from the reality of global markets.

Auto loan delinquencies surged in 2018, rising to 2.36 percent, which was the highest rate since the third quarter of 2010.

Bloomberg reports:

More Americans than ever are at least three months behind on their auto loans, a sign that the U.S. economy may have little growth left in the tank.

The outlook for the millennial generation, those who were born in the two decades before the new millennium, are bleak. Student debt is only one of the burdens. There is also the lack of attractive jobs. Even worse are the inclinations toward socialism that comes attractively packaged as more democracy. Yet there is a solution.

This way out is more capitalism. In as much as free capitalism works as an engine of rising productivity, the living standards can rise. Capitalism creates wealth and promotes prosperity.