Murray Rothbard: When Keynesianism Collapsed! Economists Are Still Trying To Preform CPR On This Corpse.

One of the great communicators of complex economic principles is Austrian Economist Murray Rothbard. You won’t find a better step by step explanation of economics than his book Man Economy and State.

I got this video from EconomicPolicyJournal.com.

For more analysis read this article titled, “The Many Collapses of Keynesianism”, by Lew Rockwell at Mises.org.

If you are wondering where inflation is today read this article titled, “Where Is The Inflation” by Mark Thornton at Mises.org.

Inflation doesn’t appear magically for no reason, and then the Federal Reserve rides in on its white horse and saves us from this beast. Inflation is caused by expanding the supply of money. The beast of inflation is caused by the savior on the white horse. The Fed is the only entity that can legally (counterfeit) increase the money supply, and it does this through credit expansion and low-interest rates. Like the tech bubble of 2000 and the housing bubble of 2007, our inflation is concentrated in some sectors and is starting to leak out into the rest of the economy. These sectors are commodities like oil and gold, the stock and bond markets, and banks. The Fed bought troubled assets from the banks. These banks are holding counterfeit dollars, on their balance sheets, instead of non performing assets like under water mortgages. This makes the banks balance sheets look profitable. The banks have a sweet deal with the Fed. I wonder how we can get a deal like that. Oh!, I forgot, we’re the ones who will eventually pay for the banks sweet deal.

Here is a quote from the Thronton article,“There are other major reasons why consumer prices have not risen in tandem with the money supply in the dramatic fashion of oil, gold, stocks and bonds. It would seem that the inflationary and Keynesian policies followed by the US, Europe, China, and Japan have resulted in an economic and financial environment where bankers are afraid to lend, entrepreneurs are afraid to invest, and where everyone is afraid of the currencies with which they are forced to endure.

Keynesianism vs.The Austrian School in this video.

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