A recession is a case of … murder. (Cue the suspense music.)
After decades of debates, discussions, books, podcasts, articles, and every other medium out there to showcase the odious nature of the Federal Reserve System, the central bank has finally conceded that it is the sole cause of recessions.
With an inevitable economic contraction on the horizon, there is a lot of recession talk. For libertarians and some conservatives, you can’t have a conversation about recessions without the Eccles Building.
The Fed causes the booms and busts through a vicious concoction of artificially raising and slashing interest rates, manipulating the money supply with expansions and contractions, and enabling the moral hazards on the open market and in government.
During two election campaigns, former Representative Ron Paul made the Fed one of his primary campaign issues. It woke up millions of Americans, but it mostly fell on deaf ears in the rest of the country and in the media.
You can now say that Dr. Paul, Murray Rothbard, Ludwig von Mises, and the entire Austrian crowd have been vindicated.
Speaking at the annual meeting of the American Economic Association in Atlanta, former Fed Chairs Ben Bernanke and Janet Yellen made a stark admission: The Fed is responsible for recessions.
From Bernanke: “Expansions don’t die of old age. They get murdered.”
From Yellen: “Two things usually end them [expansions]. One is financial imbalances, and the other is the Fed.”
Will Jerome Powell stick the knife into the U.S. economy? It’s just a case of murder.
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