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The Fed Never Solved The Mystery Of The "Missing Inflation", And Now It Has A Big Problem

Back in June, this website first "solved" the "mystery" behind America's missing inflation, when we showed that a record number of US renters are unable to afford housing, suggesting that record amounts of "disposable income" were being diverted for use as a shelter "tax" instead of being spent on true discretionary goods and services, leading (together with the Obamacare tax) to the broad and distressing decline in not only traditional retail sales and moribund consumer spending, and the "secular" economic slowdown observed over the past several years.

The Fed's premature rate hike

The prospect of higher interest rates in the United States and economic weakness elsewhere has caused the dollar to rise against most other currencies. This makes our goods and services less competitive in the world economy. The Fed should be much more concerned about the economy's continuing weakness than the prospect its strength will lead to spiraling inflation.

Why Capitalists Are Repeatedly "Fooled" By Business Cycles

Submitted by Frank Shostak via The Mises Institute,

According to the Austrian business cycle theory (ABCT) the artificial lowering of interest rates by the central bank leads to a misallocation of resources because businesses undertake various capital projects that — prior to the lowering of interest rates —weren’t considered as viable. This misallocation of resources is commonly described as an economic boom.

Lack Of Public Options Shows How The Economy Gets Rigged Against Us

We have been through decades of "privatization" -- turning public services over to private enterprise. They lay off the well-paid, unionized public employees and hire people at minimum wage. This cuts the tax base, hits local businesses, and forces foreclosures. On top of that, minimum-age employees require public services like food stamps just to get by.

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