From the Page

• Page 31- The four modifications made in the 1990s to “create a more accurate representation of inflation, but lower-stated inflation data.” This makes the actual inflation numbers completely skewed and misrepresent what necessary price signals in the market.

  • Substitution

  • Hedonic Adjustments

  • Geometric Weighting

  • Owner’s Equivalent Rent

• Page 67- The Federal Reserve is genuinely a banking cartel created by and created for the ultra-wealthy of the world.

  “These exact circumstances occurred in the Panic of 1907, when the deep pockets of J.P. Morgan prevented a wholesale collapse of the New York banking industry, sending shockwaves through the financial world and driving a cartel of banking leaders- including Morgan, the Rockefellers, Warburg, Kuhn, and Loeb- to lobby for a solution. Their answer was to create the United States Federal Reserve in 1913.”

• Page 162- The start of “WHY ISN’T THE AUSTRIAN SCHOOL RESPECTED? FOLLOW THE MONEY.” It is egregious!

  Over 300 staff PhD Economists work directly for the Fed in Washington, DC. Over half the journal’s (Journal of Monetary Economics) current editorial board members cash Fed paychecks, and the other half have been paid by the Fed in its past.

  … the Fed spent an astounding $389 million on research and analysis, much of it flowing to academic economists.

  A Huffington Post investigation of the seven leading economic journals found 84 of 190 editorial board members had Fed ties.

• Page 263- Figure 24.2:

  

How will it end?

Lepard lays out three likely scenarios on how the debt-based consumption will end. Our group landed on 2.5 after the discussion. From Page 167:

> 1. The Hard Stops: Halt debt growth and let GDP catch up (unlikely and very recessionary); > > 2. The Crash: Allow debt to default (possible but a depression results, see 1929); or > > 3. The Inflation Solution: Print money faster than debt grows (a temporary fix with long-term, high-inflation consequences).

What do you think will happen? Leave a comment below!

Sidebar

• Kevin Warsh - Hawk, Dove or Puppet?

• Truflation

• The discussion around money and economics that we hear in the news and through the megaphone today is not new. @6c535...424bf provided several examples in his book of quotes back to ancient times that were much more insightful than any discussion amongst leaders today.

• Keynes and his “animal spirits” may all be dead in the long run, but it’s certainly making the world feel max pain today.

• Thomas Hoenig has a backbone.