In the July Issue of The Mises Institute’s The Free Market, now in mailboxes and online:
The Mises Institute interviewed David Stockman about his new book The Great Deformation and the role of the Fed. Stockman noted that even by its own standards, the Fed has moved well beyond what was once considered prudent intervention:
The system we have now is one in which the Fed decides, through a Politburo of planners sitting in Washington, how much liquidity is necessary, what the interest rate should be, what the unemployment rate should be, and what economic growth should be.
There is no honest pricing left at all anywhere in the world because central banks everywhere manipulate and rig the price of all financial assets. We can’t even analyze the economy in the traditional sense anymore because so much of it depends not on market forces, but on the whims of people at the Fed.
Also this month, economist William L. Anderson, in his article Economic Adventures in Fairyland, addresses some of the fantastic claims made by Keynesians about the benefits of debt and spending:
After studying and teaching Keynesian economics for 30 years, I conclude that the “sophisticated” Keynesians really do believe in magic and fairy dust…. If governments issue enough debt, argue Debt Fairy True Believers, the economy will gain “traction” as government spending, through the power of pixie dust, fuels a recovery. Governments spend, businesses magically gain confidence, and then they spend and invest.
Be sure to also check out The Free Market for the latest on The Mises Institute’s breakfast with David Stockman at the Metropolitan Club in New York, the latest recipient of the Mises Entrepreneurship Medal, and more on donors, alumni, and scholars at the Mises Institute.