The problem of the eurozone is not China, rate hikes, or the Ukraine war. The curse of the eurozone is central planning. Subsidizing obsolete sectors and zombie firms, bloated government spending, and high taxes.
American exceptionalism, the “treasury of virtue,” has always been the moral cover for all of this greed, racism, barbarianism, and worse. The good news today is that it is hard to think of anyone with a sound mind who would sincerely believe this any longer.
Contrary to the longstanding myth of Fed independence and political neutrality, the Fed is a deeply political organization committed to kicking the can down the road to get the regime through just one more election without a fiscal or monetary disaster.
Recorded at the Mises Circle in Fort Myers, Florida, 4 November 2023. Includes audience question and answer period.
Recorded at the Mises Circle in Fort Myers, Florida, 4 November 2023.
The new problem we now face arises from the fact that huge deficits are only manageable so long as interest rates remain very, very low.
Data on employed persons, wages, and other measures point to trouble ahead in an economy already strained by growing bankruptcies, mounting debts, and disappearing savings.
For 2023, the United States will likely post the worst GDP growth—excluding debt increases—since 1929. In other words, the country is in a recession disguised by bloated deficit spending.
Modern prosperity is astonishing, but it can quickly disappear if our monetary unit fails. We need to keep up the fight for sound money.
Recorded at the Mises Institute Supporters Summit in Auburn, Alabama, 12-14 October 2023.
