The Federal Reserve is irrelevant. Market signals continue to confirm the previous truth while economists and pundits continue to follow what’s irrelevant in breathy fashion. In future decades and centuries, economic archaeologists will marvel that what was so unimportant was taken so seriously. To recognize the Fed’s insignificance, all readers need to do is […]
To Track Interest Rates Watch Blackstone Group, Not The Fed Read More »
Despite what Fed officials, economists, and their media enablers tell you, there’s no such thing as costless credit. This is important simply because economists and pundits who should know better still claim against all logic and reason that when the Fed goes to “zero,” so do interest rates. No, that’s not true. Low prices
Bernie Sanders and Josh Hawley Fail Before They Begin Read More »
What should the interest rate be? The very question insults reason simply because economies are comprised of individuals, businesses and governments with wildly divergent pasts, presents and futures. An interest rate is a singular concept, not a number that a central planner can divine. What’s true about interest rates is similarly true about bank
The Arrogant Conceit of Bank Capital Requirements Read More »
Repeat it over and over again: there’s no interest rate, and there’s no such thing as interest rates. There are individuals, and individuals face a myriad of borrowing costs as numerous as there are people. The Fed can’t nor does it make credit easy or tight simply because an economy is people. And the
The Fed’s Critics vs Fed: Central Planners vs. Central Planners Read More »
A famous libertarian economic thinker, and memory says it was the late Walter Williams, was once presented on a talk show with the idea of a higher minimum wage. The suggestion was something like $7.25/hour to $10. In a paraphrase of Williams, he quizzically asked, “Why are you being so stingy? Why not raise
Where’s Walter Williams As Fed ‘Cuts’ Rates 50 Basis Points? Read More »
