Mises Wire

Between war weariness and the inability of the US government to pay war bills, reality is going to come to the fore even if Washington doesn't like it.

While China achieved strong economic growth in the post-Mao years by allowing free markets to work, the Communist leadership wants to return the economy to its old socialist ways. However, while the government can give fake growth numbers, it cannot reverse socialist failures.

Because borrowing from the Fed continues to reach new highs, inflation is unlikely to drop as fast as M2 would indicate, and excess money growth continues to generate problems in the economy with few improvements as it just keeps zombie financial entities alive.