It's the Economy, Stupid was Clinton's rallying cry in 1992. Will End the Fed and End Endless Wars be the rallying cry in 2028?
High rents helped propel Zohran Mamdani to victory in the Democratic mayoral primary last week. Guess what caused the Big Apple's lofty rents and other prices to soar?
The meaning of America First, and here as well.
The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists. Ernest Hemingway
The government and its chiefs do not have the powers of a mythical Santa Claus. They cannot spend except by taking out of the pockets of some people for the benefit of others.
Ludwig von Mises
MAKE AMERICANS FINANCIALLY INDEPENDENT
Why have rents, housing, food, and other prices risen to their highest levels in history?
There is no mystery about rising prices, It’s the Fed, stupid. The Fed has the ability to create money, and the new money enters the banking system and then spreads from there throughout the economy, raising prices and wages.
New money via the Fed is “trickle down” economics.
Order a free copy of Rothbard’s money and banking classic monograph. Or, you can read it online here.
In addition, a year ago the Mises Institute’s WSJ ad “Who Needs the Fed”? spells it all out.
And last week Democratic Socialist mayoral candidate won the primary because of NYC’s high prices.
Like so many economic illiterate politicians, there is no understanding that NYC is the epicenter of the Fed’s money printing. New York banks are one of the primary recipients of the Fed’s easy money policies, which in turn lend out the Fed’s newly created dollars in the Big Apple to Wall Street and other beneficiaries of artificially low interest rate loans.
Ryan McMaken’s essay reveals how the Fed’s easy money policy boosted real estate prices in recent decades.
The Fed’s manipulation of interest rates causes the boom/bust cycle. There is no “natural” business cycle. There are, however, ebbs and flows in the profitability of companies and industries as consumer preferences shift over time. This is the “natural” interplay of supply and demand.
Since 1913, when the Federal Reserve was created, we have all the evidence we need to conclude the Fed is the engine of price inflation and the destabilizer of the economy.
The US dollar has lost more than 95% of its purchasing power since the Fed was created to maintain the purchasing power of the dollar. (Gray shaded vertical bars are periods of recession.)
In other words, we don’t need the Fed. The free market performs “its magic”—providing goods and services consumers want as consumer prices in general fall (natural deflation).
The Fed’s 2% inflation target is anti consumer and sustainable prosperity,
Moreover, America’s bipartisan foreign policy of endless wars since the end of World War II has been a humanitarian and financial disaster. Virtually all the costs of America’s undeclared wars have been borrowed, which helps explain the nearly $37 trillion natal debt.
America’s financial day of reckoning is approaching sooner than most people realize.
Financial sanity can return with a constitutional federal budget, personal responsibility and financial independence, philanthropy, and peace and commerce with all nations.
For the 2028 presidential campaign, ending the Fed and endless wars should be the slogan that carries a presidential candidate to victory.
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Perry Atkinson and I recently discussed the unfolding economic events.
James Bovard on protectionism.
Recent interviews discussing the state of the economy with Perry Atkinson, Jim Peters, and Randy Durham.
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Dave Campbell and I discuss MAFI on the Clarity and Chaos podcast.
Col. Mike and Dr. Mike and I discuss Trump and his promises on the National Security Hour.
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Restoring free enterprise, medical freedom, and a constitutional federal budget.
The insufferable Jim Cramer reveals his economic ignorance in a recent CNBC rant.
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Tom DiLorenzo’s pamphlet, Axis of Evil, is now available at the Mises Institute.
My December 10 talk on medical care.
Bob Murphy interviews Dr. Keith Smith of the Surgery Center of OK.
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Murray Sabrin, PhD, is emeritus professor of finance, Ramapo College of New Jersey. Dr. Sabrin is considered a “public intellectual” for writing about the economy in scholarly and popular publications. His book, The Finance of Health Care: Wellness and Innovative Approaches to Employee Medical Insurance (Business Expert Press, Oct. 24, 2022), and his other BEP publication, Navigating the Boom/Bust Cycle: An Entrepreneur’s Survival Guide (October 2021), provides decision makers with tools needed to help manage their businesses during the business cycle. Sabrin's autobiography, From Immigrant to Public Intellectual: An American Story, was published in November, 2022. He is also the author of Why the Federal Reserve Sucks.