This morning on CNN’s “State of the Union," President Trump's top economic adviser, Larry "I'll take a heart attack for the president" Kudlow, came out in complete support of monetary inflation.
He revealed his stance as he supported on the show President Trump's Fed nominees, the inflationist Stephen Moore and the peculiar gold bug Herman Cain.
Kudlow, head of the National Economic Council, said criticism of the pair for being insufficiently qualified or too partisan for the independent central bank is “unfair.”
But the key takeaway from the Kudlow comments is that he is in favor of Fed manipulation of interest rates and that he wants them lower based on the argument that productivity is keeping price inflation under control.
But here Kudlow displays that he does not he understand the Austrian school insight that, even if there isn't price inflation, monetary inflation distorts the capital-consumption structure of the economy that results in the boom-bust business cycle.
His calling for lower rates is the same thing as calling for greater distortions in the capital-consumption structure and ultimately an even greater bust phase.
Robert Wenzel is Editor & Publisher of EconomicPolicyJournal.com and Target Liberty. He also writes EPJ Daily Alert and is author of The Fed Flunks: My Speech at the New York Federal Reserve Bank and most recently Foundations of Private Property Society Theory: Anarchism for the Civilized Person Follow him on twitter:@wenzeleconomics and on LinkedIn. His youtube series is here: Robert Wenzel Talks Economics. More about Wenzel here.'g
No comments:
Post a Comment