You can say, “Everything is great,” all you want. But if it isn’t, it isn’t.
Pundits and politicians keep trying to talk up the economy. They might be able to keep optimism running high for a while, but at some point, expectations will run headfirst into economic reality.
In his most recent podcast, Peter Schiff argued that nobody is ready for the long-term pain that’s ahead. That’s because the mainstream is mostly ignoring the warning signs. By-and-large, the message you’ll get watching CNBC or Fox Business is that “everything is great!” Peter has been hammering on this theme. In an earlier podcast, he noted that everybody is still optimistic about the economy because the stock market is so high.
Jerome Powell came out pretty hawkish in his public debut yesterday. The new Federal Reserve chairman said he sees little risk of recession and reaffirmed plans to continue tightening the money supply through interest rate increases and quantitative tightening.
My personal outlook for the economy has strengthened since December. I don’t see [the recession risks] as at all high at the moment.”
But there are signals that Powell’s optimism is unwarranted and that the monetary blanket knitted together with nearly a decade of easy money may be about to unravel. In fact, the deceleration in the growth of the money supply orchestrated by the Fed matches the trend just prior to the 2008 crash.
Mises Institute academic vice president, and Pace University professor of economics Joseph Salerno explains in an article originally published on the Mises Wire.
Global wealth increased to a new record of $280 trillion in 2017, according to Credit Suisse Global Wealth Report 2017. That seems like pretty good news until you consider global debt is increasing nearly three times as fast.
As the saying goes, “Insanity is doing the same thing over and over again, and expecting different results.”
Albert Einstein is usually credited with that statement, although there isn’t any proof that he ever said it. Nevertheless, it’s certainly a good working definition of insanity. And by that definition, I have to conclude that socialists are insane.
There’s nothing like a natural disaster to bring out the ignorance in people – especially economic ignorance. Hurricanes Irma and Harvey were no exception to this rule. They brought out some pretty amusing economic punditry. Of course, it would be a lot funnier if so much of it didn’t come from so-called experts who have the power to dictate policy.
Have you noticed it’s always the weather?
Tucked away in virtually every story reporting negative economic news, you will find some reference to the weather. It was too hot. It was too cold. It was too wet. It was too dry. To hear the mainstream media tell it, Mother Nature is the single most important driver of the US economy.