In our history, we’ve had three central banks and three failures. Now it’s time for the Federal Reserve to face the music.
In the 21st century, technology is the gift that keeps on giving. Each month, prices of the latest gadgets and gizmos depreciate rapidly, supporting the biggest economic expansion on record. Ten years ago, a 50-inch plasma T.V. set you back $2,999. Today, you can buy the same one for just over $500. These deflationary forces show how capitalism is supposed to work. Companies battle it out to build the next revolutionary product, driving down prices, creating jobs, prosperity, and innovation in society.
But if technology delivers impressive results, why have we failed to embrace its model elsewhere?
Why does the price of everything else, from food to housing, rise each year? Sadly, we’ve fallen for propaganda that states we need inflation to achieve economic growth and prosperity. Using clever perception management, western world governments have been able to repeat this myth so often that it’s become part of our subconscious. We now believe inflation is healthy and deflation is simply a miracle byproduct of technology.
In both cases, however, the opposite is true. We know this because everytime central banks and governments turn off the liquidity taps, assets such as stocks, real estate, and corporate bonds, tumble sharply. And in the small period of time between the elites realizing their “mistake” and them turning the money printer back on, we witness the real economic forces at play, the real market screaming out for a return to sanity.
In the 21st century, technology is the gift that keeps on giving. Each month, prices of the latest gadgets and gizmos depreciate rapidly, supporting the biggest economic expansion on record. Ten years ago, a 50-inch plasma T.V. set you back $2,999. Today, you can buy the same one for just over $500. These deflationary forces show how capitalism is supposed to work. Companies battle it out to build the next revolutionary product, driving down prices, creating jobs, prosperity, and innovation in society.