Contrary to Milton Friedman’s thesis that the decline in the money supply caused the Great Depression, the real reason was the collapse of real savings, which was due to loose monetary policies by the Federal Reserve.
Economics textbooks describe monetary policy as though it were administered by experts who know how to fix problems in the economy. In truth, there is no such thing as “monetary policy”; what we have is the Federal Reserve engaging in wealth transfers.
The position of new home buyers in 2024 is unprecedented. Not only are prices at record highs, but the new generation of prospective home buyers can’t remember a time without cheap mortgages.
As if the government has not done enough destruction in the housing market, there now is a scheme to have the government nationalize second mortgages. Given the previous disaster with primary mortgages, we do not anxiously await the outcome of this proposal.
Commercial real estate in the USA is facing a major crisis which could not have been possible without the enabling of the Fed and the draconian restrictions imposed during covid. As commercial real estate prices collapse, the usual suspects call for even more bailouts.
What does the state do when in a financial fix? Unlike the rest of us, it legally counterfeits. By so doing, it transfers wealth to those who are politically connected—and then lies about it.
Contrary to Milton Friedman’s thesis that the decline in the money supply caused the Great Depression, the real reason was the collapse of real savings, which was due to loose monetary policies by the Federal Reserve.
Alexander Salter argues that “there’s no good reaso
Ordinary people cannot stop the Fed and the government from inflating the currency, but they can take measures to shield themselves from some of its harmful effects. Mark Thornton presents a few ideas on how it can be done.
