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Home / Tag Archives: Monetary Policy

Tag Archives: Monetary Policy

What’s the Difference Between Naturally and Artificially Low Interest Rates?

We know that the Federal Reserve pushes interest rates artificially low by manipulating the federal funds rate (the target interest rate that commercial banks borrow and lend their excess reserves to each other) and using monetary policy maneuvers such as quantitative easing. But could we have low interest rates without Fed intervention? In this clip, Peter Schiff explains the difference between artificially and naturally low interest rates and how the Fed messes up the economy with its...

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Peter Schiff: Transitory Permanence

The inflation that we were emphatically told would be transitory and unmoored continues to persist and entrench. As the troubles gather momentum Washington is doing its best to ignore the problem or actively make it worse.The latest batch of data shows that the Consumer Price Index rose 5.4% in September, the 5th consecutive month that year over year inflation came in at more than 5%. The figure rises to 6.5% if we project the inflation levels of the first 9 months of 2021 to the entire...

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Pick Your Poison: SchiffGold Friday Gold Wrap Oct. 15, 2021

Last week’s jobs numbers came in weaker than expected. September’s CPI came in hotter than expected. That puts the Federal Reserve between a rock and a hard place. Does it tighten monetary policy to fight inflation? Or does it keep stimulating to boost the economy? In this episode of the Friday Gold Wrap, host Mike Maharrey breaks down the data and says it’s about time for the central bank to pick its poison.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s...

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Ron Paul: This Is the Biggest Fed Scandal

There was a recent scandal at the Federal Reserve when information came out revealing that several central bank officials made multiple multimillion-dollar stock trades in 2020 even as the Fed was putting its big fat thumb on the economic scales. But as Ron Paul points out, there’s an even bigger scandal over at the Federal Reserve and it’s a matter of policy. The Fed’s manipulation of monetary policy and the broader economy impoverishes ordinary Americans, even as it enriches the elites,...

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A Lack of Self-Reflection: SchiffGold Friday Gold Wrap Oct. 8, 2021

Inflation continues to run hot. Even some of the folks over at the Fed are having a hard time peddling the “transitory” inflation narrative. But politicians and government officials lack the skill of self-reflection. As a result, they can’t clearly see the problem. In this episode of the Friday Gold Wrap, host Mike Maharrey looks at some of the latest inflation data and the Fed’s response to it. He also touches on the fake debt ceiling fight and breaks the September job report numbers.The...

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Some Non-Covid Links

David Henderson reviews Diane Coyle’s new book, Cogs and Monsters. A slice: One of the biggest surprises I noticed in her view of economics is her statement, “Competition is quite a tender plant.” She explains, “The more successful, the larger, the more profitable and powerful the incumbents, the harder it is to maintain competition.” Actually, something closer to the opposite is the case. The more profitable the incumbents are, the greater is the incentive for new competitors to enter...

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Some Non-Covid Links

Doug Bandow writes wisely about China. A slice: China’s population has likely crested, and will begin falling. India will take over as the world’s most populous country. The PRC is at risk of growing old before it grows rich, with a fertility rate that barely budged after abandonment of the coercive “one child” policy. This system resulted in a rapidly aging population that has turned a worker surplus into a dearth, and leading to a socially destructive shortage of women. Beijing has...

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Peter Schiff: The Fed Is Destroying the Foundation of the Economy

The Federal Reserve held its September Federal Open Market Committee (FOMC) meeting last week. While there was a lot of talk about the central bank tapering its quantitative easing program, the Fed didn’t announce any concrete plans to slow asset purchases. The lack of concrete action was no surprise to Peter Schiff. After the Fed meeting, Peter appeared on NTD News to talk about it and the Fed’s apparent reluctance to take any concrete steps toward monetary tightening. He said the...

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Endogenous and exogenous steering

You occasionally see people debate whether money is “endogenous” or “exogenous”. I will try to explain that debate using the analogy of endogenous and exogenous steering of a car. Imagine a road network with a series of relatively straight but bumpy highways, and then occasional intersections where people can turn onto an alternative highway, which is also straight but bumpy. On the straight sections, drivers occasionally nudge the steering wheel to the left or right...

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Fun on Friday: I Wish I Had This Superpower!

Wouldn’t it be cool if you could just talk and your words would alter reality?It would elevate you to superhero status — or super-villain depending on your propensity to use your power for good or evil.You know, there’s a real-life person who at least appears to have this superpower.Federal Reserve Chairman Jerome Powell.Think about it. This dude gets up and makes a speech and the entire stock market moves. Bond markets respond. Gold sells off or takes off depending on the Fed chair’s...

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