The Fed

Paul Krugman claims that the real factor determining inflation is the rate of unemployment, not increases in the supply of money. As usual, he is wrong.

The Fed-launched real estate bubble did not just create havoc in residential markets, but also has distorted the commercial real estate market, too. And it is getting worse.

Few economists—even the free-market advocates—understand what caused the Great Depression. No, the Fed didn’t cause the Depression by failing to inflate the currency. Instead, it was the Fed’s inflation that led to the disastrous early events.

In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.

If the housing market is an indicator, the Fed's actions in slowing down the housing market soon will be reflected in the economy itself.

What will the next wild card be? Mark looks back at some historical examples.

In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.

Recorded in Tampa, Florida, on February 17, 2024.

Mark looks at the disconnect between the Fed, the stock market, and the Real Economy.

Paying off the debt obviously won't happen, and the feds won't even contemplate anything that keeps the debt from getting bigger. They'll just try to inflate the debt away, so get ready for price inflation.