Fekete was one of the few old Europeans to recognize the central role of money: on the positive side as a means of amicable division of labor, on the negative side as a casualty and lever of political intervention.
The economic analysis of repudiation applies to the debt of all levels of government and to all countries. The central question is not how big the government is or how much it owes, but rather whether the debt is funded by taxes.
The Japanese experience offers valuable lessons for the US and Europe. A loose monetary policy can stabilize a recession for the short term, but a persistent flood of cheap money paralyzes productivity gains and growth.
What matters is not whether the emergence of a bubble is associated with price rises but rather the fact that the emergence of a bubble gives rise to nonproductive bubble activities.
Although the Fed insists otherwise, the central bank really has no tools left except money creation, and the Fed will keep printing money in a panicky attempt to prevent a financial collapse.
Politicians have ignored the threat to small businesses that are failing not because their owners used the wrong strategies, but have been destroyed by the misguided and ineffective forced shutdown.
