Monetary Policy

The Federal Reserve’s fixation with “stable prices” has led to an unstable economy for the past century. 

Federal Reserve policy has been to expand credit out of nothing without regard for the real damage it does to the economy.

The Federal Reserve’s fixation with “stable prices” has led to an unstable economy for the past century. 

To avoid being blamed for the nefarious consequences of inflation, the government and its henchmen resort to a semantic trick. They try to change the meaning of the terms. They call “inflation” the inevitable consequence of inflation, namely, the rise in prices. 

Despite claims that the Federal Reserve System is a “stabilizing” force in the US economy, the truth is that the Fed is and has been the main engine of inflation for more than a century.

Most economists believe that a growing economy needs a growing supply of money. While sounding like a common-sense idea, it turns out to be dreadfully wrong.

Mainstream economists believe that central banks can “control” inflation, which they believe actually boosts the economy. The only thing inflation boosts is more inflation.

For the past few years, we have seen claims that the BRICS countries were going to develop a gold-based trading currency and push the dollar from its reserve currency perch. However, none of the economies of these countries can operate with a currency as good as gold.

Willie Sutton was a famous bank robber. The late Alan Greenspan used banks and the monetary system to take infinitely more money from Americans than Sutton ever stole.

Many economists believe that expanding the money supply helps create and facilitate economic growth. That is not the case.