The Fed

Price inflation is never caused by greed. It's always caused by a growing money supply. The money supply has grown big-time since 2020, and now we pay a lot more for food and housing.

A few years ago, the leftist publication The Intercept claimed that inflation only hurts the “one percent,” but is “good” for everyone else. The truth is much different, as the Fed’s inflationary policies have benefited the politically-connected crony class.

We are stuck in the middle of the road, far away from full socialism or the unhampered market.

The Fed promises a soft landing, but the fact that the Fed now plans to start cutting interest rates is one of the strongest recession signals we can get.

As the Federal Reserve manipulates the money supply and interest rates, the yield curve becomes a less reliable indicator of economic activity. The more the Fed plays havoc with the system, the more we see the boom-and-bust syndrome.

Keynesian economists claim that the economy needs at least 2-3% inflation in order to avoid business cycles. But these inflation rates over time are economically ruinous and they actually harm economic growth.

The Fed for many years has manipulated the money supply in order to attempt to keep interest rates below market levels. At some point, however, the market prevails in one way or another.

Most Americans have no idea of the damage that the Federal Reserve system has done to their daily lives. Unfortunately, most Americans are not particularly interested in finding out either.

As the Federal Reserve manipulates the money supply and interest rates, the yield curve becomes a less reliable indicator of economic activity. The more the Fed plays havoc with the system, the more we see the boom-and-bust syndrome.

On this episode of Radio Rothbard, Ryan and Tho are joined by friend of the show, Peter St. Onge.