Say what you want about Donald J. Trump, but he is correct about one thing: the Federal Reserve has, with near certainty, been holding interest rates down for political purposes - namely, to aid Hillary Clinton in getting elected president of the United States.
President Obama’s High Command at the Fed has had the luck which Napoleon looked for in his generals. The exercise of two Yellen puts seems to have delayed the late dangerous stage of asset price inflation to beyond 2016 Election Day.
Thousands of people recently demonstrated in Brussels against free trade deals negotiated by the EU. This happened just days before a meeting of EU trade ministers in Bratislava last month, which was considered the last push to salvage the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States. Not only is Europe divided on the deal, but the talks have been extremely secretive.
The public, benefiting from vast and varying voluntary market arrangements without understanding them, can be lured by siren songs of something for nothing, because they don’t see how it undermines those irreplaceable arrangements which reliably serve them.
It has become commonplace to note that the 2016 election campaign is unlike any America has seen before. Whether it is the issues brought to the fore, the number of scandals, or the intensity of the personal invective, it is hard to believe we are now within the bounds of what our founders had in mind.
The abolition of cash implies the removal of money and hence the destruction of the division of labor and the market economy. It is likely that rather than promoting economic growth, abolishing cash to permit the central banks to lower interest rates into deeper negative territory will lead to the destruction of the market economy and promote massive economic impoverishment.
In an election year where libertarians have reason to fear every candidate on the ballot, public calls for Hillary Clinton to be held accountable for her obvious violations of the law are a rare bright spot.
Free entry and competition in the production of goods is good, but free competition in the production of bads is not. Free entry into the business of torturing and killing innocents, or free competition in counterfeiting or swindling, for instance, is not good; it is worse than bad. So what sort of "business" is government?
The federal government is making a move in the direction of further centralizing the administration of elections nationwide. The justification this time around is stated to be danger of Russian hackers. We are reminded of Stalin's infamous words: "The people who cast the votes decide nothing. The people who count the votes decide everything."
Combined with her grand visions of social engineering - plans to involve the state ever more intimately in our daily lives - Hillary Clinton’s enthusiastic embrace of the Marxian policy of transferring more inherited wealth from families to government will take us down a very dark path.
It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.