What is Janet Yellen, new Fed chairman, really worried about?
We’ve said it many times here, and many others have said it before us in other places. Free markets are not typically the friend of big corporations with lots of market share, money, and friends in government. These companies are already fat and happy. Free markets and free prices allow new challengers to enter the marketplace. This brings prices down and quality up. Not what the fat firms want.
This is your “recovery” folks. Inspires confidence doesn’t it?
We’ve written about this before. Government data, especially around inflation and employment is a joke, to be kind.
It is a key part of the home buying process. Money that is. And most young people don’t have much of it.
Though we gave a mixed review to The Economist’s Index of Crony Capitalism, we are very pleased that such an index now exits even if it is flawed. (Too much focus on billionaires, not enough focus on broader more middle class crony capitalism. The index also encourages the idea that crony capitalism, which is created by regulation to a large degree, can be regulated away.)
Sadly this is counter intuitive in today’s American society. We have been told since childhood that government “evens things out” and helps reduce income inequality. We were all regaled with stories of the Great Depression, where big government’s patron saint FDR bestowed “relief” to those stricken by the downturn of the 1930s. We were too young to understand that these myths were being propagated by people who benefited from an expanded government, namely the teachers (unions). We were also too young to understand that government actually extended the Great Depression for reasons we won’t go into here. We have been told our entire lives that government makes things more fair.
You want to know why our central banks aren’t honest? (Aside from the fact that they are by their very nature dishonest.) You want to know why politicians (when they have a clue what is going on economically) aren’t honest? Perhaps it is the mind boggling amount of debt which has kept the game going.
The entire economic activity of the USA constitutes $17 trillion. There is $100 trillion in debt floating around the globe right now according the Bank for International Settlements.
It’s time for the former head of America’s central bank to make bank.