Tariffs backfiring; the Fed's interest rate manipulations; nuclear subs nearing Russia?
Big government policies suck under a Republican president, too.
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The goal is to help spread the ideas of peace, economic freedom, and civil liberties- my mission for the past fifty years.
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The evidence is piling up that higher tariffs are causing economic pain across America despite the cheers of the talking heads on Fox News that higher tariffs are the greatest thing since sliced bread.
Tariffs are taxes on American consumers and importers. Americans pay tariffs unless importers can get their foreign exporters to eat the tariffs, which is doubtful.
Tariffs will not make “America rich,” Tump’s assertion time and time again when asked by reporters about the effects of tariffs on the economy.
Businesses and communities where they are located are starting to feel the adverse consequences of higher tariffs. See here, here. In other words, tariffs are starting to shrink profits at US corporations, making them less valuable, and causing imported prices to increase.
Trump, the businessman president, is governing more like Bernie Sanders than Col. Sanders.
In the final analysis, eventually the Supreme Court may rule Trump’s unilateral tariff policies unconstitutional, and save his presidency from egregious trade interventions.
The Fed announced last Wednesday it is keeping the fed funds rate steady. There was no surprise there, despite Trump wanting the Fed to lower the rate to one percent, well below the rate of inflation, thus making short term interest rates negative.
Real returns for savers would collapse if the Fed did what Trump wants. Near zero interest rates fueled a speculative boom, like the one we had after the Great Recession after 2009, when the Fed kept rates close to zero for several years. Another speculative boom would unfold if Trump gets his way followed by a nasty recession.
The issue that should be addressed is why the Federal Reserve is allowed to manipulate short term interest rates.
As money manager Bill Fleckenstein wrote (Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve) several years ago, “Central bankers are actually central planners…they pick an interest rate to within two decimal places they guess is the right one, and then they proceed to cram it down the throat of the banking system.”
Murray Rothbard and others have written eloquently about why we do not need the Fed. Interest rates need to be “liberated” from the whims of central bankers.
The real Liberation Day in American will come when the economy is no longer manipulated by the Fed and the income tax is abolished—the most egregious depredations of the American people.
In the meantime, we hope Trump and Russia will cool down the rhetoric.
US support for Ukraine is another example of the potential horrific consequences of an interventionist foreign policy.
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Two new essays have been published about MAFI and its historical significance.
Stars of Entrepreneurship:
https://starsofentrepreneurship.com/from-professor-to-public-advocate-how-murray-sabrin-is-fighting-for-financial-freedom/
Moguls of Business:
https://mogulsofbusiness.com/murray-sabrins-financial-rebellion-the-movement-to-end-taxes-and-empower-charity/
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The MAFI Collection is coming next month. Get ready to order the baseball cap to enlist in the financial independence movement.
My essay on financial independence and a constitutional federal budget.
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Please forward this post to your network, list, etc. The more people learn about MAFI, the sooner we can achieve financial independence and restore the republic.
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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.
Trump is the puppet being used to destroy the economy AGAIN!
Covid 2.0
Don’t be fooled, wake up !
Government wrecks everything it touches. Look at all the messes we are trying to survive. It's like walking into quicksand with 50 pound weights tied to your ankles. True, retardicans are not going to save anything or anybody. They are the "lite" version of the democrat leftists.