Booms and Busts

We may be told price controls are a temporary necessity, as in 1971 under Nixon. But one thing is certain: price controls will do nothing to resolve the issues underlying the inflation.

What happens during a depression? Should we expect it to end, or can an economy remain stuck at the bottom?

Presented at Mises University 2021.

The public usually doesn't understand how fiat money expansion benefits the regime at their expense. The regime likes it that way. 

With such a messed-up economy, why is it still hard to spot a bust on the horizon?

We may be told price controls are a temporary necessity, as in 1971 under Nixon. But one thing is certain: price controls will do nothing to resolve the issues underlying the inflation.

The concerns about a bubble implies those shopping for a new home are wondering if they are walking into a trap. Home prices have soared and no one wants to buy at the top. 

The concerns about a bubble implies those shopping for a new home are wondering if they are walking into a trap. Home prices have soared and no one wants to buy at the top. 

Because of past easy-money binges, the pool of wealth may be declining just as prices are increasing. And we're likely to see upward pressure on interest rates. This is bad news, and shows the limits of the Fed's power. 

It's already clear that after an initial sugar high caused by stimulus funds, there's now hardly any "bang for the buck" from stimulus funds. In fact, governments are spending millions for each job "created" by stimulus.