In a world, plagued by tight money, one man
CAN MAKE A DIFFERENCE.
We’re waiting for your movie, Bob. Aside from “Civil War”, of course.
Summary to save me from watching the video?
‘No, really: The Fed has been tight this whole time.”
And, “Scott Sumner saved the Fed from running out of excuses for awhile.”
*takes a bow*
RAWR GOLD BAD I’m assuming
Nm I read it, just cheesy propaganda for his book with the usual techniques (delicate music in the background, staged candids, frequent camera jumps when someone is speaking, zoom-ins on book text).
I loved this part though:
“People confuse the symptoms of depression with the cause.”
Yeah, man, I sure hate when people confuse “falling prices” with “economic downturns” and conclude that deflation must be bad. Oh, that’s not what you meant?
[insert appropriate reaction GIF]
Silas, don’t act like an idiot.
He’s not acting! ZING
Venezuela is the ultimate demand driven success story… Aggregate Demand is massive, money printing really helped them a lot.
The citizens of Venezuela have so much Aggregate Demand sometimes they don’t even bother paying.
They totally showed those “supply side trickle downers” how to run an economy properly. We all know supply side is meaningless. Demand! Demand! Demand! Forget about supply, you don’t need it.
To be fair, he did just write a post on hyperinflation claiming that it’s “right around the corner” or something.
OK, I admit that Venezuela had a lot of other socialist policies as well as Keynesian stimulus money printing.
However, the problem with Sumner is that he pretends to support a free market without government interference, while also apparently believing that Keynesian stimulus can work… but those are inconsistent beliefs. Once the state takes control of wealth distribution, you automatically have socialist economic central planning… after that it’s only a question of how far down that rabbit hole you care to go.
Mercatus Center? Whoa. They claim to be Libertarian but come up with some very inflationist and anti-Libertarian propaganda from time to time. I’ll stick to real Austrians. Not sure why mainstream economists keep thinking the interest rate derives from the producer’s loan market, oh yeah, they didn’t read Rothbard’s MES.
Low Rates = Capital Consumption:
When are the statists going to locate the magic sweet spot in history where the market failed requiring the cure of violent intervention and funny money injections?
When are the statists going to provide us with that scientific experiment proving that free markets lack “momentum” and require an external source of “momentum” provided by (take your pick), funny money, government spending or both?
They have already shown it to us many times (in their mind).
All those historical studies (with government intervention and funny money injections) are cases where the free market failed and thus justified those very interventions in the first place.
Like when the government was just trying to make it easier for blacks to get housing by backing their loans with tax payers’ wealth, and then those greedy CEOs accepted the money.
And then greedy party poopers shorted the housing market with Credit Default Swaps. They don’t want anyone else to be happy, so they drag everyone else down.
Don’t they know that optimism trumps reality?
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