The Fed

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.

After a dramatic couple of days in the markets, economists and political figures are calling for the Fed to cut interest rates. But if we ever want to see an end to all this economic chaos, what we need are not lower rates or higher rates, but accurate interest rates. 

More than two decades ago, the Federal Reserve joined with the federal government to make housing more affordable. The first housing bubble popped in 2008, and a second bubble is on its way to bursting.