Peter’s Blog

With trade wars popping in and out of headlines during the Trump presidency, there are no guarantees when it comes to foreign exchange. As tariffs, bailouts, and central banks all affect exchange rates, it’s worth revisiting what causes the international economy to demand the almighty US dollar.

Last week’s inflation data confirms what many economists have been saying for months: the Fed’s inflation target is not achievable anytime soon. In fact, many economic signals suggest the opposite: inflation is here to stay, and even the Fed realizes it.

As the Fed becomes even more dovish on inflation, average Americans are paying the price on everyday goods and services. The price of beef, in particular, exemplifies the problems that arise when the government tinkers with interest rates and grows deficits with no end.

For better or worse, Elon Musk has taken a liking to old Milton Friedman videos. On the good side, Musk has embraced Friedman’s distrust of government and money printing. Friedman, however, was no Rothbard regarding the consistent application of ethical and economic principles to the actions of the state. Despite Friedman’s compromises and error-ridden macroeconomic theorizing, there’s […]

With the fallout from President Trump’s tariffs still echoing throughout the economy, many are lauding the president’s policies as valuable leverage against trade allies. What these praises miss, however, are the unintended consequences of protectionism and the depressing effect of political uncertainty on economic activity.

In the wake of last week’s FOMC meeting, it’s worth revisiting the economic function of interest rates, which guide economic activity in accordance with societal time preference. In order to suppress the natural rate of interest, central banks must resort to inflation.

With the Trump administration ushering in a new class of bureaucrats under the auspices of private businessmen, it’s worth recalling why the phrase “government efficiency” is an oxymoron. As the Austrian School of Economics stresses, the key difference between business and bureaucracy is the ability to measure profitability. The following article was originally published by […]

Critics of President Trump are fond of calling his administration an oligarchy of wealthy businessmen. What they fail to realize, however, is that the United States government has long been an oligarchy, prone to extracting wealth from its citizens and unaccountable even to elections.

Critics of the Fed are well-versed in arguments against central banking. It enables reckless spending and creates monetary confusion, and it distorts prices for consumers. History also reveals another troubling result of central banking: more frequent and deadlier war.

In times of economic hardship, like today, politicians often take aim at the wealthy entrepreneurship class, usually employing the rhetoric of socialists like Marx. Rather than blame the rich for their economic woes, the American people should aim their ire at those responsible: profligate spenders in Washington and their cronies.