David Stockman on What an Audit of the Federal Reserve Could Really Reveal

Each time the interest rate is lowered by the Federal Reserve more people become poor and the poor become poorer. The first recipients of newly-created (out of thin air) currency and credit benefit at the expense of later recipients. Richard Duke

by David Stockman

“International Man: Trump is calling for a weaker dollar and negative interest rates. What does this tell you about Trump’s understanding of economics?

David Stockman: It tells you that he has no understanding of economics at all!

I think Trump is not even a primitive when it comes to economic comprehension. His views are just plain stupid when it comes to exchange rates. He seems to think it’s some grand game of global golf, where the strongest player gets the lowest score.”

https://internationalman.com/articles/david-stockman-on-what-an-audit-of-the-federal-reserve-could-really-reveal/

SEE:

Real High Crimes And Misdemeanors

 

“Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well-warmed, and well-fed.”

 

Debasement and Crony Capitalism; Nothing is New Under the Sun-Richard Duke

 

Nehemiah: The king and his nobles (cronies) extracting from the people through debased silver

 

Micah 6: wicked balances and bag of deceitful weights

 

Inflation (creation of currency and credit out of thin air) under James 5:1-6

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Review by Richard Duke on the Mises Institute website of the book: The Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crisis of the Last Century by Dr. Mark Thornton

The Mises Institute is the publisher of the book.

OPEN THE BELOW FOR THE REVIEW BY RICHARD DUKE:

https://mises.org/wire/why-you-should-read-mark-thorntons-skyscraper-curse

Book:

https://store.mises.org/-P11097.aspx

A general, but serious, reason to read this book— The Skyscraper Curse: And How Austrian Economics Predicted Every Major Economic Crisis of The Last Century — is to avoid being one of the millions who will be duped when the next crash (bust) occurs. Millions were and continue to be duped as to the reason for the boom leading up to 2007 and 2008 and why the bust occurred in 2008 relating to real estate.

Thornton begins with an important discussion of money creation and Richard Cantillon, writing: “… Richard Cantillon (1680s-1734?) [was] the first economic theorist and proto-Austrian economist …[he] showed how the interest rate and the money supply can create changes and distortions in the economy, a phenomenon now referred to as “Cantillon effects.”

Monetary inflation is affected by who gets the money and credit first and who gets it last. As fiat money is created by central banks, private banks are in a position to expand the amount of loans they make. The wealthy have established relationships with the banks, and they have the real estate and assets to provide collateral for the loans. Large, established companies and wealthy individuals are in favorable positions relative to small businesses and people with low or average incomes. The loans allow big companies and wealthy individuals to invest in capital goods during the boom phase of the business cycle. Central banks thereby create artificial inequality and poverty. This is the primary Cantillon effect of redistributing wealth.