The Meaning of Financial Repression

[Draggingtree]

Mises:

The Meaning of Financial Repression

JUNE 1, 2015 Mark Thornton

 

We live in a world of massive monetary inflation and extremely low interest rates. Mortgage rates are near historic lows and yet it seems that people cannot get loans. Home sales are up, but with a near record percentage of sales made with cash, rather than a mortgage. The unemployment rate is nearing “full employment” and yet a record number of people do not have jobs.

 

We are repeatedly told that the unprecedented monetary stimulus by the Federal Reserve and other central banks is necessary to stimulate the economy, create jobs, and generate economic growth. The truth is that this scheme is designed to stealthily steal from the productive classes in order in enrich the unproductive financial class and the counterproductive political classes. It is a con game.

Financial Repression

[Draggingtree]

The Fed’s Confusion Over the "Natural Rate" of Unemployment and Inflation

 

JULY 20, 2015 Frank Shostak

In May, the US unemployment rate stood at 5.5 percent against the rate of 5.3 percent for the “natural unemployment,” also known as the Non-Accelerating Inflation Rate of Unemployment (NAIRU).

 

According to the popular view, once the actual unemployment rate falls to below the NAIRU, or the natural unemployment rate, the rate of inflation tends to accelerate and economic activity becomes overheated. (This acceleration in the rate of inflation takes place through increases in the demand for goods and services. It also lifts the demand for workers and puts pressure on wages, reinforcing the growth in inflation).

 

By this way of thinking, the central bank must step in and lift interest rates to prevent the rate of inflation from getting out of control

https://mises.org/library/fed%E2%80%99s-confusion-over-natural-rate-unemployment-and-inflation