In recent times, President Biden and his colleagues in Congress, along with the Federal Reserve, have bestowed upon Americans an unwelcome surprise: rampant price inflation. Nearly every essential shows a steep rise in cost.
According to the consumer price index (CPI), consumer prices surged by 6.8 percent over the past year, the largest annual spike since June 1982. In reality, the CPI is increasing at more than double the officially reported rate.
Is it possible for the Federal Reserve to curb this rampant inflation without instigating a severe recession?
Former U.S. Treasury Secretary Larry Summers is doubtful.
If you’re unfamiliar, Summers has a vested interest in the matter. He once aspired to become the Federal Reserve chairman but is perhaps too controversial to be appointed.
Summers is far more comfortable in the academic realm of Harvard, where he can critique from a distance while enjoying the benefits of tenure. He excels in this setting.
Additionally, Summers serves as a paid commentator for Bloomberg, which frequently highlights his opinions at strategic moments. Continue reading
I’ve been caught stealing
Once, when I was five
I enjoy stealing
It’s just as simple as that
Well, it’s just a simple fact
When I want something,
And I don’t want to pay for it
I walk right through the door
Walk right through the door
Hey all right!
If I get by, it’s mine
Mine all mine!
– Been Caught Stealing, by Jane’s Addiction
“No Cause for Alarm”
Theft manifests in various forms—robbery, fraud, and burglary among them.
From deceptive practices and physical force to white-collar crimes and clever pickpocketing—such actions include home invasions, insurance fraud, credit card scams, governmental kickbacks, hold-ups, carjackings, embezzlement, and much more.
Ultimately, they all revolve around one central issue: unlawfully taking someone else’s property (including money) without their consent or legal authority. Continue reading
“The free market for all intents and purposes is dead in America.” – Senator Jim Bunning, September 19, 2008
House Prices Soar
The significant housing bubble and subsequent crash of the mid-2000s left many Americans reeling, with some never fully recovering. Unfortunately, central planners have orchestrated a similar scenario once again.
On Tuesday, the Federal Housing Finance Agency (FHFA) released its U.S. House Price Index (HPI) for September, revealing an alarming 18.5 percent increase in home prices from the third quarter of 2020 to the third quarter of 2021.
In contrast, consumer prices rose by just 6.2 percent over the same period. This disparity is staggering—house prices have inflated nearly threefold compared to general consumer prices.
In the Los Angeles area, for instance, the housing market has grown so irrational that one now needs considerable wealth to buy a mere 1,200 square foot fixer-upper in an ordinary neighborhood. Yet, Washington’s clever policymakers have an answer for this crisis. Continue reading
The Federal Reserve officials appear to be pushing hard to jeopardize your Thanksgiving celebration. What is causing this?
The current wave of rampant inflation—marking the worst increase in prices since the 1970s—stems directly from the Fed’s strategy of extensive dollar debasement. The central bank has expanded its balance sheet by a staggering $5 trillion since September 2019.
It’s crucial to remember that this $5 trillion was fabricated from nothing. There were no resources harvested, no products made, and no innovations realized. The Fed simply made a notation, and the money appeared virtually out of thin air.
This approach has a critical flaw: there is no tangible production to back this newly minted money. Much of the $5 trillion was loaned to the Treasury, enabling it to inject artificial funds into the economy as if they were legitimate capital, subsequently driving up prices for goods and services.
This fictitious currency circulates throughout the economy, treated as if it were real wealth by everyone from grocers to dog walkers. However, it fails to represent any genuine increase in wealth, merely inflating prices. Furthermore, unchecked Fed money creation has triggered an extensive supply chain crisis, resulting in severe shortages of consumer goods and additional price hikes. Continue reading
