The Fed

"Liquidity was the cause of the crisis, and now excess liquidity is presented as its solution!"

Instead of facing the truth and permitting not only the malinvestments to fail, but a real recovery to take shape, Obama, Krugman, and their allies are insisting that all this "perpetual motion machine" known as an economy needs is a little more spending to lubricate the gears and send it on its merry way.

The correct road to recovery is the path to a "free and prosperous commonwealth."

Brad DeLong and Paul Krugman continue to mock the Austrian explanation for the business cycle, but their ridicule is based on their own deficient model of the economy's capital structure.

Contrary to Greenspan, we can conclude that it is not long-term rates as such that fueled the bubble but the loose monetary policy of the Fed.

Do we already have inflation in the pipeline? I think so.

Given how many Keynesian economists predicted a return to depression conditions when World War II spending came to an end, and that what we instead got was the single most robust year the private economy has ever seen, isn't it a little strange that not one of these economists went back and reexamined his premises?

The Austrian arguments, to repeat, are deductive. They are not statistical.

In contrast, throughout its previous 150 or so years, the American economy had managed to do just fine without the Federal Reserve "fine tuning" the money supply.

Time after weary time, it is the mainstream and Keynesian economists (who ridicule and ignore Austrian economics as unscientific) whose predictions are utterly refuted by the events of history.