Central Bank Digital Currencies: The Last Battle in the War on Cash
Sponsored by Dan Johnson and Randee Laskewitz.
Sponsored by Dan Johnson and Randee Laskewitz.
No matter the situation, bank CEOs believe that the Big Score is just around the corner. Then reality hits.
Paper money transforms governments from parasites to predators. Once a government can print what it likes, it no longer needs taxes.
Those who defend the science fiction fallacy of MMT say that if the government cuts the deficit, then the world will run out of US dollars and there will be a global monetary meltdown. This is so ludicrous that it should not even have to be discussed.
If we read between the lines, it is apparent that the Fed is hoping that price inflation will fall to politically acceptable levels without any additional tightening, and without a recession. But "hope" is all the Fed has.
Recorded in Nashville, Tennessee, on September 23, 2023. Includes audience Q&A period.
If the only antidote offered to prevent a 2008-style contraction is monetary easing, then the risk of stagflation is even higher. Without drastic cuts to deficit spending, or a recession, the likely outcome is stagflation.
If we read between the lines, it is apparent that the Fed is hoping that price inflation will fall to politically acceptable levels without any additional tightening, and without a recession. But "hope" is all the Fed has.
Fed policymaking is all about political expedience. When we see Fed policy, we must keep in mind that "managing the economy" is secondary to managing public debt service and public expectations.