The Trump White House has enacted tariffs in the belief that other countries are “cheating” by enacting tariffs against US goods and “manipulating” their currencies. However, with the US dollar being the world's reserve currency, the US has engaged in dollar manipulation through inflation.
Mark Thornton cuts through the noise to explore the real economic threats facing America.
Trump has tried to claim that he favors "Main Street over Wall Street." Unfortunately, by pushing aggressive low-interest-rate monetary policy, Trump has put himself squarely in the camp of “Wall Street over Main Street.”
Dr. Gordon reviews Quinn Slobodian‘s latest book trashing the Austrians, especially Murray Rothbard. Not surprisingly, Slobodian shows little understanding of the Austrians and economic history.
Fiat money and state coercion have prevented us from seeing the threat to our well-being that would be apparent with sound money and true liberty.
Keynesians claim that through the “multiplier,” a country can spend itself into prosperity. All that is needed is for government to tax, borrow, print money and spend, and prosperity will follow. Austrian Economists, however, are not fooled by such myths.
The ruling classes and their media blamed the 2008 financial crisis on free markets and too little government regulation. However, because the Federal Reserve promised to help cover losses in financial markets, it practically invited reckless behavior.
The central bank monetary shenanigans in both Europe and the US no longer can be ignored or covered up. Unfortunately, as their economies falter, the Fed and the European Central Bank will resort to even more financial trickery to cover for previous monetary foolishness.
According to Keynesian “economics,” central bank interest rate cuts will make the economy stronger—unless the economy is in a “liquidity trap.” The truth is that these kinds of monetary tricks actually weaken the economy.
The principle of Occam‘s Razor states that we should avoid superfluous activity. When it comes to our monetary system, however, the Federal Reserve System doesn't simplify things, but instead complicates the economy. That alone is reason for it to be abolished.
