Central bankers are saying two things at once. First, they say that negative interest rates are a natural historical development. But then they say negative rates are an essential tool central banks are using to manipulate the economy.
The crisis we faced in 2008 has not gone away, as we failed to heed its warning to change course and reduce debt levels. Instead, it has become bigger and more dangerous.
Kodak's newly announced $765 million loan is just another case of DC picking winners and losers.
According to Keynesians, wealth effects result from money creation, and they have a beneficial impact. The Keynesians are right that wealth effects exist. But they're wrong about who benefits.
Our current position on debt seems to be akin to saying the only way to keep from drowning is pouring more water over the victim.
According to Keynesians, wealth effects result from money creation, and they have a beneficial impact. The Keynesians are right that wealth effects exist. But they're wrong about who benefits.
Our current position on debt seems to be akin to saying the only way to keep from drowning is pouring more water over the victim.
When confidence is extreme, there's no scrutiny. There's always a "this time it's different" mindset, the belief that anything is possible.
The average American has no memory of the gold standard or even the stagflation of the 1970s. The collective mindset is now the classic “kick the can down the road.”
