Today’s macroeconomic beliefs defy all the historical evidence with their focus on increasing the economic presence of the state at the expense of the productive private sector.
The question is not if the current system will end. The question is how it will end.
The Fed has abandoned its own rules on "price stability" in order to favor what are essentially higher inflation targets. The Fed is now headed down a road it traveled in the 1970s.
A zero interest rate policy, unlimited asset buying, Wall Street bailouts, etc. This is a never-ending monetary accommodation that leaves you asking: What else will the Fed do after inflation averaging?
Eventually, loose monetary policy will damage real savings to the point that the economy can no longer sustain sufficient economic growth. At that point, it will become clear that money printing can't create economic growth.
The mother of all monetary stimuli could turn out to be worse than a dud—a catalyst to a slide into further recession just as the supply shock of pandemic recedes.
The most important insight of the Fed's move to increase its inflation target is this: central banks don't much like to follow "rules." They make the rules.
Jeff Deist calls in to talk about deflation, Jeff Booth’s book The Price of Tomorrow, the role of the federal reserve in creating consumerism, liberalism as opposed to Marxism, and more.
We’re in a terminal debt spiral. The only question is how long it will last until the patient succumbs.
