Central Banks

Recorded in Birmingham, Alabama, on April 2, 2022.

The usual "experts" claim inflation is a general increase in the price level. Wrong. Prices rise because of inflation, which is a government-caused increase in the amount of money in circulation.

Despite assurances from politicians and the media, the Federal Reserve System is not a collection of geniuses who stand guard against inflation and recession. Instead, think of the Fed policy makers as the Keystone Cops of central banking.

Paul Krugman recently wrote that the reason we see high inflation is that people mistakenly believe inflation is in our future and act accordingly. This reasoning is false.

The usual "experts" claim inflation is a general increase in the price level. Wrong. Prices rise because of inflation, which is a government-caused increase in the amount of money in circulation.

Advocates of modern monetary theory promise a cornucopia of goods and jobs if only the government has the "courage" to print money at will. Sound economic analysis, however, exposes MMT as fraudulent.

The Fed's unprecedented monetary expansion has created damage that it cannot undo by switching directions.

Central banks, and especially the Federal Reserve System, continue to churn up inflation and the boom-and-bust cycles—in the name of "stabilizing" the economy.

Bob continues his series, this time focusing on the creepy worldview of WEF speaker Yuval Harari, and further reviews Schwab’s book on Covid-19 and the Great Reset.

Jeff and Bob Murphy talk about the state of gross economic ignorance in America today.