Monetary Policy

A century ago, the German reichsmark went into freefall as the most famous hyperinflation in history exploded the German economy. The repercussions still are with us.

With US government debt skyrocketing past $33 trillion and possible recession looming, the Treasury faces the prospect of running out of suckers. Finding buyers for US debt will become much more difficult.

According to mainstream economists, the expectation of inflation leads to higher prices. That is impossible, however, because actual inflation involves real increases in the money supply.

Dr. Jonathan Newman is back with Bob to break down Krugman's shifting economic predictions and to consider the trajectory of the US economy.

The common belief is that increases in the stock market drive overall economic growth. Expansionary monetary policies, however, are responsible for driving up stock prices even as they simultaneously damage the economy.

While the Fed tries to engineer the mythical “soft landing” for the economy, Austrian economists know that this is an exercise in futility. Once the credit-fueled boom occurs, the bust logically follows.

The US Government will face another round of federal debt expansion in 2024, but will there be enough creditors to allow their continued spending?

Advocates of unbacked paper money claim that theirs is the “civilized” choice, as opposed to gold, or what Keynes called “that barbarous relic.” These inflationists, however, are the ones wrecking civilization as we have known it.

According to mainstream economists, the expectation of inflation leads to higher prices. That is impossible, however, because actual inflation involves real increases in the money supply.

With US government debt skyrocketing past $33 trillion and possible recession looming, the Treasury faces the prospect of running out of suckers. Finding buyers for US debt will become much more difficult.