Senior fellow of the Mises Institute Mark Thornton returns to the show to discuss Austrian business cycle theory, how the Fed’s artificially low interest rates create perverse incentives, resulting in wild spending on both the production and consumer sides of the economy. Thornton discusses the crash of the stock market in the 1970s after Richard Nixon took the United States off the gold standard, which motivated Ron Paul to run for office and explains the moral hazard of fractional reserve...
The One and Only Correct Diagnosis of The Economic Crisis
Murray Rothbard, For a New Liberty, Chapter 9, Inflation and the Business Cycle: The Collapse of the Keynesian Paradigm Addressed in Rothbard's other works, The Case Against the Fed, What Has Government Done to Our Money and A History of Money and Banking in the United States, is the issue of why and how an evil cartel of bankers, led by an alliance of the Morgan and Rockefeller interests created the Federal Reserve System in the First Place: To rip you off to finance wars of imperial...
