Inflation

The recent awarding of the Nobel Prize for Economics to Robert E. Hall and Michael Woodford shows that the Keynesian paradigm is alive and well. That is bad news for everyone else.

If anyone should be able to understand that statism is no substitute for sound economics, it would be an economist. Many of them—and especially those at elite universities—shill for inflation and unbridled state power.

Thanks to government elites, the only thing that matters is money, as the Federal Reserve has been creating it in ruinous amounts, pretending it is being responsible.

The traditional explanation of the Panic of 1837 recognizes that excessive bank credit expansion generates inflation, speculation, and economic instability. Yet, the same mainstream explanation wrongly presupposes a national bank was the solution to those problems.

As the economy becomes increasingly uncertain and confusing, the metals markets are responding. It is time to take a close look at them.

One of the most popular ideas in the Keynesian lexicon is the belief that through monetary manipulation and government outlays, an economy can spend it self rich, thanks to the “multiplier.” It is dangerous nonsense, like so much else of what Keynesians preach.

The Federal Reserve’s inflation machine not only disrupts our lives now, but makes life difficult for future generations.

Although not altogether “Austrian,” Leggett nevertheless anticipated several insights associated with Austrian economics and especially monetary theory.

Keynesians claim that government debt is no problem because “we owe it to ourselves,” as though owners of US debt don’t care if they are repaid or not. Taxpayers, who actually will pay the debt, are left out of the equation.

Keynesians claim that government debt is no problem because “we owe it to ourselves,” as though owners of US debt don’t care if they are repaid or not. Taxpayers, who actually will pay the debt, are left out of the equation.