Money and Banks

Patrick Newman joins Bob to discuss a recent tweet from Stephanie Kelton, which argued that the government's "red ink makes our black ink possible."

How can a bank “create money out of thin air”? We must enter the magical kingdom of “fractional-reserve banking,” where deposits are turned into loans, loans are turned into money, and so on, to find out.

The usual suspects are "relieved" that Congress gave President Biden what he wanted on the so-called budget deal.

As Washington cheers the so-called budget deal, the real problems loom. Liquidity issues are next.

What happens next will depend heavily on what the regime will feel is necessary to buoy public support for the regime and its current ruling party. 

2022 was a warning sign that debunked the myth of eternal monetization of debt with low inflation. It is time to be serious. High deficit spending is not a tool for growth, but a tool for cronyism and a burden on the future.

With each iteration of the banking crisis, the Federal Reserve System and federal regulators gain in power and authority. Maybe the banking crisis isn’t an accident.

The usual suspects are "relieved" that Congress gave President Biden what he wanted on the so-called budget deal. Without sound money, however, the borrowing and spending regime will collapse sooner or later.

On this episode of Good Money with Tho Bishop, Peter St Onge joins the show to discuss this week's Fed announcement and what it means to normal Americans.

The problem here not that the central bank is "setting" the "wrong" interest rate. The problem is the Fed has long been relentlessly forcing down interest rates to satisfy various politically determined "needs."