Inflation

The affordability crisis is upon us. Housing, food, you name it, life is becoming expensive. The government blames business, but perhaps government officials should look in the mirror.

Governments are fond of accusing private firms of “greed” when prices increase during periods of inflation. However, they fail to tell the public that government services also face price increases.

Infamous hyperinflations like what hit Germany in 1923 did not begin as a flood. Instead, they started as smaller bouts of inflation initiated by governments that printed money to pay for deficit spending.

Sponsored by Gregory and Joy Morin.

Forget Vegas sports betting for reckless speculation. When the Fed officials make projections, the markets assume they are accurate. However, as Jerome Powell himself admits, forecasts are speculative at best.

Jonathan Newman rejoins Bob to explore more of the mechanics and political implications of the Fed's current state of insolvency.

Fractional reserve banking allows the Federal Reserve to manipulate the money supply, leading to booms and busts. Central banking is not a defense against business cycles; it is a major cause of them.

In the wake of bad news on inflation, the Federal Reserve is pushing up interest rates. However, a Fed-induced higher rate is not the same as an interest rate decided by the market.

Paper money transforms governments from parasites to predators. Once a government can print what it likes, it no longer needs taxes.

While court economists such as Paul Krugman insist that inflation is government's way of ensuring full employment, in reality, inflation is one of the many ways governments steal from productive people.