One more post designed to show us:1 - that he wheels of the US...

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    One more post designed to show us:

    1 - that he wheels of the US economy (under Biden) are falling off;
    2 - that if the statistics say something different then that must be because government is lying in an attempt to fool everybody, except, of course, our poster and his well informed and impartial sources;
    3 - that salvation is around the corner thanks to another four more years of Trumpism.

    As previously stated, the analysis contained in the posts in reference is quite often deriving from the Austrian School of economics and credit cycles. For this school of economics interest rates on borrowing and investment are the triggers of the real cycle The argument is that a natural rate of interest allows the supply of loans to match the need to borrow. This, of course, under the premise that interest rates are freely determined by lenders and borrowers operating under a free market framework.

    The problem, they argue is that interest rates are instead determined artificially by the FED, leading to distortions in the time value of money and inevitably to malinvestment, which they also argue can only be cured with a recession or depression.

    Central to this school is also the quantitative theory of money, which in simple terms states that the general price level of goods and services is directly proportional to the amount of money in circulation, which is the same as saying that if one doubles the amount of money in circulation then prices must double.

    Now, as you know during the immediate aftermath of the great depression a lot of money was printed under a program called Quantitative Easing leading the followers of this school, notable among them Peter Schiff, to predict that hyperinflation was just around the corner. Also, if you well remember, interest rates went almost as low as zero and stayed quite depressed until well after the economy reopened following the Covid epidemic, prompting these same people to expect the wheels of the US economy to fall off at any time.

    As these scenarios did not materialize, the explanation advanced was that such predictions did came true except according to the government, an institution propagating all sorts of lies.
 
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