December saw a resurgence of “degrowth” advocates in the media, with two articles published by Nature garnering special attention on X (formerly Twitter).
The fallacies underlying the degrowth movement are not new in economics, but it’s worth revisiting them and their important connections to monetary policy in the age of central banking.
Happy New Year from me and everybody at SchiffGold! Here’s hoping it is an absolutely fantastic year.
So, have you made any New Year’s resolutions?
The real minimum wage is always zero.
Restaurant workers in California are about to find that out the hard way.
Two days before Christmas in 1913, Woodrow Wilson gave the United States a Christmas gift that keeps taking. On that day, he signed the Federal Reserve Act into law, creating the US central bank.
Since that inauspicious day, the US dollar has lost 96% of its value.
What’s going on with US banks?
Over the last month, loans outstanding in the Federal Reserve bank bailout program increased by $17.24 billion. It was the second month we’ve seen borrowing from the Bank Term Funding Program (BTFP) surge. And the pace of borrowing is increasing.
The Federal Reserve recently surrendered in its inflation fight. But price inflation is nowhere near the 2% target. Why did the Fed raise the white flag prematurely?
One of the major reasons is debt.
The world is buried under record debt levels and the global economy can’t function in a high interest rate environment.
The Biden administration just ran the largest November budget deficit in history.
And it managed this feat even with a 9% increase in government receipts.
The Federal Reserve just surrendered to inflation.
Fed officials won’t call it a surrender. They’re claiming victory. But surrender is the effect of the policy trajectory laid out by the Federal Open Market Committee (FOMC) at its December meeting.
Inflation is dead!
At least that’s what you would think if you listen to government officials and talking heads in the financial media.
So, how is this victory over inflation working out for the average person?
Not so great.