As artificially low interest rates damage the economy, progressives in Congress demand more of the same. In the vernacular, they want the economy to “take the hair of the dog that bit them.” Of course, this only makes things worse in the long run—which is where we are today.
While Vivek Ramaswamy was unsuccessful in his Republican presidential primary bid, at least he helped to demystify the Federal Reserve. This is not the usual political rhetoric the public receives.
A recent CNN broadcast claimed that deflation was bad for the economy and that we need to adjust to higher prices. As usual, the journalistic “experts” got it backward.
Contrary to popular opinion, bank capital is not a reserve to cover potential losses. In fact, even the ill-fated Silicon Valley Bank had adequate bank capital before it collapsed.
In this review of Edward Chancellor’s The Price of Time, Joakim Book notes that a market economy cannot function correctly when central bankers manipulate interest rates.
Although fractional reserve banking is the most popular model for banking, it is fraudulent at its core, something the Austrians have noted for many years.
In his recent State of the Union speech, President Biden called out private enterprise for what he calls “shrinkflation” and “greedflation.” If he wishes to know who is responsible for this phenomenon, he should look in the mirror.
The Federal Reserve claims to be independent and politically neutral. But since its actions have political ramifications, it is impossible for the Fed to be either.
One of the great myths of US history is that Herbert Hoover was a laissez-faire president. In truth, he intervened in the economy more than any of his predecessors, creating the crisis known as the Great Depression. His successor made things even worse.
While Vivek Ramaswamy was unsuccessful in his Republican presidential primary bid, at least he helped to demystify the Federal Reserve. This is not the usual political rhetoric the public receives.
