The Fed

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

The Fed is, effectively, a car driving at night, very fast, with no headlights. That is a real threat, probably to an unprecedented degree.

The 1970s were the turning point in the wrong direction. Under Keynesian guidance, gold was abandoned, prices increased, and the dollar rapidly depreciated.

If you’re in trouble, you stop spending on frivolous stuff and you save. It applies on a personal level; it applies on a national level. But the fiat world just flips all of this on its head.

Contractionary monetary policy may be necessary to slow the rise of inflation, but the recessionary results of this remind us why the Fed's inflationary policy is so dangerous.

Contractionary monetary policy may be necessary to slow the rise of inflation, but the recessionary results of this remind us why the Fed's inflationary policy is so dangerous.

"The worst failures of money, the worst things done to money, were not done by criminals but by governments."

Bob provides a running refutation of Stephanie Kelton's recent TED talk on Modern Monetary Theory (MMT).

The Fed is backed into a corner. If price inflation continues, the public could demand action and the Fed could be forced to cut back the flow of easy money, which may lead to a depression.