These Are The Top Risks 'We, Average Americans' Face In 2018
3. Free markets are dead, but will be blamed for the coming crisis
As the late Murray Rothbard pointed out in his magisterial workAmerica’s Great Depression , the US government and the Federal Reserve largely fueled the 1929 stock market bubble, crash and ensuing depression through massive monetary expansion. But free markets got blamed.
The same thing is happening right now with the Krugman con . The Federal Reserve’s low interest rate policies have sparked “everything” bubbles in stocks, bonds and real estate. Worse, the US public sector, juiced by free printed money, now controls more than half the economy (particularly when you include the hidden $2.4 trillion Powell Tax ).
When the inevitable collapse occurs, politicians, bureaucrats and regulators will duck responsibility. They will instead blame capitalism and ask for more powers. If past is prologue, they will get them.
4. Faulty signals
Massive central bank interventions have butchered price discovery to the point that Americans can no longer make effective economic and financial decisions.
Why have stock prices tripled since 2009? Should you borrow to go back to school or to buy an overpriced house? Is it better to save, spend or pay down debt? What is the true cost of government?
The US Federal Reserve’s money-printing has so skewered economic signals—ranging from GDP to inflation and business earnings data—that Americans have no good metrics they can use to effectively answer these questions. It’s like driving around New York with a GPS map of Botswana.
By now, Americans have forgotten all about the seven Muslim countries that the Trump Administration bombed in the three months after the last US election. But the families of the tens of thousands of civilians killed by those bombs have not.
The CIA has a term for the damage those survivors could cause:Blowback. If the US eventually gets hit with a sizable “terrorist” response from its bombing victims, average Americans will never know what caused it. The US government will thus be able to blame any enemy it chooses.
6. Trump picks on the wrong guy
The US government has distracted the American public from its economic hardships by attacking various “enemies” for so long, it’s hard to remember a time when it was not the case.