The Fed

Watch Bob Murphy's talk from last weekend's Mises Circle in Houston.

Lately, the Fed has been more and more involved in directly funding the Federal government by handing over Fed revenues to the Treasury. In fact, the Fed is handing over enough money to fund the entire food stamp program, and then some.

In 2016, the Fed's annual stress test on banks will include a scenario in which the interest rate on the three-month U.S. Treasury bill becomes negative in the second quarter of 2016 and then declines to -0.5%, remaining at that level until the first quarter of 2019.

Recorded at the Mises Circle in Houston, Texas, on 30 January 2016.

After a week of jittery markets, join us LIVE online Saturday for our Mises Circle in Houston, where we'll discuss where the world is headed in 2016.

We're being told to blame the current market volatility and emerging crisis on oil prices, China, and a "strong dollar." To find the real causes, though, we must look at central banks and at past mistakes and malinvestments.

Fear is in the air. Central bankers are warning of crisis, and while mainstream economists fear the falling prices that are on the horizon in our post-boom world, Austrians know that deflation and recessions are both inevitable and necessary.

Jeff Deist and Mark Thornton discuss how and why central bankers don't understand deflation.

Mark Thornton is interviewed on the RT program, "Boom Bust". He discusses malinvestments stimulated by artificially lowered interest rates.