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.
Liquidity only disguises risk; it does not resolve solvency issues driven by collapsing cash flows while costs remain elevated.
Negative interest rates lead to zombie firms, rampant consumerism, and growing obstacles to entrepreneurship.
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.
Those who advocate for a "weak dollar" to encourage trade with American firms show how little confidence there is in American industry. Meanwhile, cheapening the dollar punishes savers and ordinary workers.
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.
Jeff Booth says that fast-improving technology causes prices to fall, and that we would have a more prosperous world if government would step aside and embrace deflation rather than fight it.
We’re in a terminal debt spiral. The only question is how long it will last until the patient succumbs.
Negative interest rates lead to zombie firms, rampant consumerism, and growing obstacles to entrepreneurship.
