The Fed

Austrian business cycle theory points out that easy money leads to malinvestments. Once easy money disappears, the crash begins. Time to clean up malinvested assets.

While the Fed and the Biden administration try to assure Americans that their banks are safe and secure, the numbers tell a different story.

Despite all of the supposed safeguards to prevent bank failures, banks still fail. Perhaps the so-called safeguards are causing much of the trouble.

As markets settle down after the last set of bank failures, political elites claim the crisis is behind us. But it is not over, not by a long shot.

A central tenet of Keynesian economics is that governments must run budget deficits to stimulate economic growth. But government spending actually shrinks the economy.

A generation ago, the Berlin Wall fell and the USSR collapsed. Today, US monetary authorities are bringing down our own country.

Even after two years of "transitory" inflation, America's ruling classes insist that prices are falling and that all of this is temporary. We don't believe them.

The role of commercial banks in money creation is made more clear by the fact the Fed is primarily interested in creating demand deposits rather than cash. This creates a larger foundation on which commercial banks can pyramid a multiple creation of bank deposits, or "checkbook money."

The current banking crises have deep roots in US financial history. Monetary authorities have engaged in inflationary behavior for more than a hundred years.

As markets settle down after the last set of bank failures, political elites claim the crisis is behind us. But it is not over, not by a long shot.