If you listen to TV commentators, you’ve
been told the worst is behind us. Growth is picking up, and Europe is coming
out of its slumber. No one seems to be concerned that this tepid
below-2-percent growth is being entirely fed by the central bank’s massive
money printing. It’s a “growth at any price” policy. How quickly we forget.
Back in the boom days, anyone who
questioned double-digit growth in housing prices was viewed as an unenlightened
Cassandra, lacking knowledge on how the new economy had fundamentally changed
the law of scarcity. Austrian economists consistently warned that a boom built
on foundation of easy money could only lead to a disaster. Today, most of the
growth is coming from the interest rate-sensitive sectors of the economy, such
as cars and housing. This should be ringing warning bells everywhere.
The conventional wisdom is that the Fed will begin to taper when growth picks up. This is a complete misreading of what is actually happening. The Fed made a monumental mistake, and does not really know how to get out of the trap it had set upon itself. .....To ReadMore….
The conventional wisdom is that the Fed will begin to taper when growth picks up. This is a complete misreading of what is actually happening. The Fed made a monumental mistake, and does not really know how to get out of the trap it had set upon itself. .....To ReadMore….
No comments:
Post a Comment