Number one rule
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Murray Rothbard’s number one rule in an economic crisis is for the government not to interfere with the market’s adjustment process. Doing so will only perpetuate the crisis.
The Fed expects to have “no rate increase at least through 2022.”
In the 1960s, politicians and bureaucrats had nearly unbounded faith in the ability to plan a nearly perfect society.
Things didn't turn out as they had planned.
The political machines that run America's cities are likely to keep running them when these protests and riots end. Taxpayers will be worse off, but politicians will be even more powerful.
"The market has a simple way of whittling all excessive pride and overblown egos down to size. After all, the whole idea is to be completely objective and recognize what the marketplace is telling you, rather than try to prove that the thing you said or did yesterday or six weeks ago was right. The fastest way to take a bath in the stock market or go broke is to try to prove that you are right and the market is wrong." - William J. O'Neil
Ironically, the economic collapse in Europe has united both the poor and rich members of the EU in agreement that the EU has none of their best interests at heart. The political winds have shifted and are blowing against the EU.
When people are scared they let the authorities get away with all sorts of nonsense. We're seeing this with the Federal Reserve right now.
GDP can be increased through both government spending and printing new money. So, naturally, once lockdowns end we'll see a big rebound in GDP. But that doesn't tell us if the private sector is actually better off.
Why economics abandoned the analysis of human action in favor of Keynes-inspired math-centered economics.
When the Fed board meets next week, they'll like pick one of three options. They're all bad, but some are downright ugly.
Reasonable people act unreasonably when they are afraid. And people become afraid when they start to lose money, their judgement becomes impaired. This is our human nature in this stage of our evolution. It cannot be denied. It must be understood, particularly in trading the market.“
- Mass Psychology, James Dines
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