Inflation

Economist Jonathan Newman joins Ryan to discuss how deficit spending and runaway debt is causing price inflation and higher interest rates. 

The standard Keynesian line is that the government can shorten recessions by using fiscal and monetary “stimulus.” However, as Austrian economists note, ratcheting up government spending only makes things worse, setting the stage for the next economic downturn.

As people from Generation X move toward retirement, they are starting to understand that Social Security really is in crisis and many public pension plans are underfunded. Furthermore, they find that inflation is eating through their retirement savings. This won‘t end well.

If we are to achieve peace, we must get rid of those entities that create havoc even while strengthening themselves politically. In a word, we need to get rid of the Fed.

Both Monetarists and Keynesians believe that a growing economy requires a growing money supply, thus, the Federal Reserve‘s “target” inflation rate of two percent. Austrian economists, however, understand that inflation at any level creates economic damage.

The Federal Reserve has welcomed the New Year by more of the same. As government spending continues to explode, the Fed enables it with its usual financial tricks.

GDP is a ridiculous way to gauge the strength of the economy. While prices on Wall Street remain robust, trouble lurks on Main Street.

Thorsten Polleit (TP): On November 5, 2024, Donald J. Trump was elected the new US president with a landslide victory.

Mainstream economists are united against deflation, which they claim is the cause of recessions. Austrians know better, as they understand that deflation raises living standards and prevents destructive asset bubbles.

Government paper fiat money does more than just cause economic havoc. It also is an exercise in profound dishonesty and theft.