Paul Krugman has an easy answer for those that ask why people are pessimistic about the economy: the dastardly Republicans have fooled everyone. There are good reasons for the pessimism that we shouldn’t ignore, however.
While the Fed tries to engineer the mythical “soft landing” for the economy, Austrian economists know that this is an exercise in futility. Once the credit-fueled boom occurs, the bust logically follows.
One of the biggest and most pervasive myths in modern-day economics is the myth of the omnipotence of the Federal Reserve.
As the federal government continues its Ponzi scheme of issuing debt to pay for past debts, interest rates will increase to the point where this no longer is a tenable strategy—if it ever was.
A bedrock of Austrian economic thinking is the notion of causality. A libertarian worldview also requires the understanding of causality.
One lesson learned should be that fiat paper money won’t work.
While the Fed tries to engineer the mythical “soft landing” for the economy, Austrian economists know that this is an exercise in futility. Once the credit-fueled boom occurs, the bust logically follows.
Recorded at the Mises Circle in Fort Myers, Florida, 4 November 2023.
Recorded at the Mises Circle in Fort Myers, Florida, 4 November 2023.
The US economy has deteriorated into little more than a series of asset bubbles driven by the inflationary policies of the central bank.
