By protecting banks from the costs of poor investment decisions, central banks encourage further risk taking and malinvestment. They also prevent liquidation, which brings failed businesses' assets to the market at bargain prices, allowing new businesses to emerge from the detritus.
The new Fed policy proposals being floated carry significant political risk, because they enjoy support not just from the redistributionist left, but also “business conservatives” happy to raid our future to make their pain stop.
Central banks are at the heart of government mega–bailout packages. Their ongoing expansion of the money supply won't end well.
Central banks are at the heart of government mega–bailout packages. Their ongoing expansion of the money supply won't end well.
Wouldn’t you feel great knowing that your stock picking is fully insured by the Fed? Billionaires and wealthy hedge fund managers know the feeling.
Wouldn’t you feel great knowing that your stock picking is fully insured by the Fed? Billionaires and wealthy hedge fund managers know the feeling.
Accad and Koka interview Ryan McMaken.
One of the important aims of the Anatomy of the Crash is to highlight the truly global nature of the monetary policy failings since 2008—not simply critiquing the actions of the Federal Reserve, but their colleagues at the European Central Bank, the Bank of Japan, and elsewhere.
Can the US dollar lose its global reserve position? Sure it can, but not to a country that decides to commit the same monetary follies as the Fed. Most countries are trying to out-inflate the Fed. And that's good for the Fed.
