Booms and Busts

While President Trump‘s tariffs certainly are causing economic harm, they alone could not cause a recession had there not already been years of artificial credit expansion.

American history classes typically teach that the original transcontinental railroad was a major triumph. What they don‘t say is that it was a product of corporate welfare that created economic problems later on.

The most enduring economic myth of the twentieth century is the idea that FDR‘s New Deal pulled America out of the Great Depression. In truth, his policies destroyed the hopes of millions.

Americans like to believe that the US is a wealthy, indestructible country, but as government debt piles up and inflation ravages the economy, perhaps they need to start worrying. Our present path is unsustainable.

Is “austerity” in the future for the US Government? Awash in debt and facing economic crises, the government may have to go on a diet, something neither Congress nor the president want to do.

Some economists fear that excessive government debt will lead to an economic crisis and recession. However, the real threat to the economy is Federal Reserve-supported fractional reserve lending that helps to set off an unsustainable boom.

Are economic crashes inevitable, or are they the direct result of government meddling? History shows a pattern—but politicians and central bankers refuse to take the blame.

Although tariffs and other issues are getting the most news coverage, a harbinger of recession is looming: the slow collapse of commercial real estate values. This is the result of reckless policies at the Federal Reserve and the Fed cannot fix it.

Thanks to the reckless policies of the Federal Reserve, businesses are now facing the realities of an economy ravaged by inflation. Look for more signs that say “Closing.”

President Trump has indicated that a recession could be coming and the pundits are playing the blame game. Don‘t look to anyone in Washington for a coherent explanation for the downturn, however. Look to the Austrians instead.