Too much inflation and price instability becomes unmanageable. It feeds on itself to erode economic confidence.
There was a time, believe it or not, when economists wouldn’t presume to tell us what interest rates should be. They were ‘moral philosophers’ who merely observed and tried to understand.
The US working stiff is in many ways worse off than he was in the 1970s. e spends twice as much time to put a roof over his head and wheels under his feet.
The Fed doesn’t have a pile of cash sitting in the vault. It just creates money out of thin air.
The once-in-a-lifetime opportunity is for the boneheads at the Fed to enable the boneheads in the White House and Congress to spend more money
Today, interest is used by large banking companies and wealthy groups to profit. And it has become a dangerous fundamental in our modern economy.
In the next rescue, 2009-2019, debt rose even more. Worldwide, it more than doubled, growing five times faster than GDP.
Our beat is money. And in today’s money world, truth is rare; beauty can be found only in irony and mockery.
The economy is limping…staggering…and buckling. And you know what that means — cheaper credit…and more money for speculators!
You borrow the money. You buy the house. You sell the house 20 years later…and you give back the money. You would have enjoyed two decades of free housing.
Markets, economies, and even empires move in great, long-term swings. Sometimes they are forward-looking and expansive. Sometimes they retreat…
Why is the average US man poorer today than he was 45 years ago? His income is lower. And a typical lifestyle costs him twice as many work hours as it did then.
Cut the interest rates all you like. But you may as well send a meat lover to a vegan buffet. Plenty to nibble on. Nothing to fill or satisfy.
It was in the early 1970s that the idea of ‘stimulating’ an economy began to take hold, first among progressives, later among conservatives.