The Fed

Whether or not the US economy is "turning Japanese" is still an open question, but is becoming ever more likely as fake fixes are delaying painful economic adjustments.

Bubbles, as we have seen, result from deliberate "expansionary" policies by government authorities, yet Krugman always seems to treat them as being solely the products of private enterprise.

It shouldn't come as a surprise if it eventually turns out that the real danger is, like so often in the past, inflation rather than default.

Abuse of the GDP equation leads economists and pundits to blame savings and praise reckless consumption, to hate imports and love exports, and (in principle) to attribute a doubling in the flow of goods coming out of factories to a nonchange in the level of a nonexistent stock of inventory.

Recorded at Jekyll Island, Georgia; 27 February 2010.

Presented by Ron Paul at the “Birth and Death of the Fed” conference at Jekyll Island, Georgia, 27 Febuary 2010.

Recorded at Jekyll Island, Georgia; 27 February 2010.

Recorded at Jekyll Island, Georgia; 27 February 2010.

Recorded at Jekyll Island, Georgia; 26 February 2010.

Not all reforms are improvements. As we have seen, the 100-percent-reserve solution is ripe with unintended consequences.