Financial Markets

A recent fraudulent check-kiting scheme featured on TikTok bears resemblance to some of the "free money" schemes that have been coming from the Federal Reserve.

What if we could have eavesdropped on a conversation between Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen? It might have gone as follows....

The Perfect Market Hypothesis claims that all movements in the market can be considered as random, as market players and prices adjust immediately to new information. However, market players do seek new information and seek to use it.

Governing elites believe that the fiat money system is the height of “sophisticated” finance. In reality, fiat money sucks the life out of the economy like a vampire.

Both economists and laypeople carelessly refer to interest rates as the "price" of money. As Austrian economists have pointed out, however, interest is what people are willing to pay to control resources at the present time instead of waiting until later, time preference.

The Perfect Market Hypothesis claims that all movements in the market can be considered as random, as market players and prices adjust immediately to new information. However, market players do seek new information and seek to use it.

Taxing "the rich" won't make life more affordable for ordinary people. The true cause of the affordability crisis is inflation caused by central banks. 

Although John Kenneth Galbraith promoted socialism and Keynesianism, at least he was an entertaining writer. His book, The Great Crash, 1929, provides a readable history of the stock market crash that helped bring on the Great Depression.

As the Federal Reserve manipulates the money supply and interest rates, the yield curve becomes a less reliable indicator of economic activity. The more the Fed plays havoc with the system, the more we see the boom-and-bust syndrome.

The Fed for many years has manipulated the money supply in order to attempt to keep interest rates below market levels. At some point, however, the market prevails in one way or another.