Monetary Policy

As the national debt explodes and the federal government ramps up borrowing and spending, borrowing costs increase as well. Ordinary Americans will suffer the effects in due time.

Supposedly, the "big news" is the decline of inflation. However, the monetary and political forces driving the latest bout of inflation have not gone away.

Since the end of World War II, the US dollar has been the world's reserve currency. That status may well change because US monetary authorities insist on inflating the dollar into oblivion.

In the wake of bad news on inflation, the Federal Reserve is pushing up interest rates. However, a Fed-induced higher rate is not the same as an interest rate decided by the market.

While court economists such as Paul Krugman insist that inflation is government's way of ensuring full employment, in reality, inflation is one of the many ways governments steal from productive people.

We should not just be concerned about problems in the American banking system, but also about the proliferation of Eurodollars.

As the economy slowly deteriorates, consumer debt rises. In the meantime, the Fed is pushing up interest rates to deal with the inflation it caused. This does not end well.

While many economists claim that high overall debt levels can lead to economic recessions, irresponsible government spending and money expansion are the real culprits.

The call for "price stabilization" was part of the recent Republican debate. Despite its attractive appearance, having the Fed try to "stabilize prices" is a very bad idea.

While the government promotes CBDCs as tools for "inclusion," it is more likely that they will be another vehicle for federal intrusion.