Friday, April 22, 2022

There Is No Means of Avoiding the Final Collapse

Via International Man

By Nick Giambruno

The Fed has already printed trillions—and shows little sign of slowing down—which means much higher inflation is already baked into the cake.

The only question is how the Fed will respond to it.

Ludwig von Mises, the godfather of free-market Austrian economics, summed up the Fed’s dilemma:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

The Fed has two choices:

1) keep printing trillions and let inflation skyrocket

2) tighten monetary policy and watch the markets crash.

In other words, it can sacrifice the stock market or the dollar.