The political establishment is trying to stoke panic that Trump is “politicizing” the Federal Reserve. But it’s already political. The real danger, from their perspective, is not that Trump is changing the Fed; it’s that he’s making its true nature harder to hide.
Mainstream economists have justified the creation of the Federal Reserve because they claim that a growing economy—especially the banking system—needs an “elastic” currency. In other words, the economy “needs” at least some inflation. Austrian economists know better.
Lower interest rates can help promote economic growth—as long as those rates are determined by the market and not by political edict.
Bob explains why blaming private equity for America’s housing woes misses the deeper economic forces at play, from speculation to Federal Reserve intervention.
The gold price is off and running this week. But, money creation isn’t listed as a cause.
Inflation isn’t just about higher prices. It is how unwarranted increases in the money supply touches off wealth transfers from those who are less-well off to people who are close to the new injections of money into the economy.
Inflation is not going away anytime soon, and it is ravaging the American middle class. Unfortunately, no one in Washington is interested in doing what is necessary to reverse this scourge.
Since becoming president, most of the actions taken by President Trump have been anti-economic growth, and the US economy now is sputtering. Unfortunately, Trump seems to believe that a combination of trade restrictions and inflation is what the economy needs.
Profits and losses play an important role in a free market system. However, as government intervenes to protect politically-connected firms from losses, the entire market becomes distorted and less reliable.
While monetary inflation has various economic effects—predictable and surprising, direct and indirect—this article seeks to explore the effects of monetary inflation on food. Specifically, debased currency leads to debased food.
