Monetary Policy

Although Federal Reserve policies are claimed to try to target the neutral rate of interest, it is not possible for that to be accomplished through monetary central planning.

While elites tell us we need to fear artificial intelligence, they continue to approve of the Federal Reserve’s attempts to expand artificial credit, which is the real threat to our economic well-being.

Jonathan Newman tackles the new “Federal Reserve Simulator” game in which players try to match wits against the Fed. As Newman found out, however, the same outcomes occur no matter what information one feeds the simulator. In short, it’s rigged.

Politicians claim that trade deficits are due to the lack of trade barriers. However, as Ludwig von Mises explained, one cannot separate trade and sound money, especially when the current edition of the US dollar is declining in value relative to what it can buy.

Critics of the Austrian Business Cycle Theory claim that capital investors over time will no longer be fooled by artificially-low interest rates triggered by central banks. However, when central banks push easy money policies, the inflation itself sets the ABCT pattern in motion.

Inflation is a government tool used to confiscate wealth from ordinary citizens and transfer it to government agents and others who are politically connected. That most Americans believe inflation is caused by greedy business owners shows how successfully the government covers its tracks.

The Fed’s cost overruns in its building renovation project supposedly are not borne by taxpayers because, as the myth goes, the Fed is “self-financing.” However, the Fed’s “earnings” come from interest payments from the government, payments made by...taxpayers.

What would be the economic consequences if one individual had a money printer? Now trace that out to a central bank and government.

What if the affordability crisis is not a failure of markets at all? What if it is the predictable outcome of how modern governments finance themselves?

Each economic crisis brought on by loose money brings on a “solution” of...looser money. This pattern is not just a threat to the economy but to our very freedom itself.