Credit Out of “Thin Air” Brings Wealth Destruction
Federal Reserve policy has been to expand credit out of nothing without regard for the real damage it does to the economy.
Source: Mises Institute
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DW NOTE
The Federal Reserve has held its policy rate at 3.65% through a year in which the Strait of Hormuz closed twice, oil supply fell 1.7 million barrels per day, and the deficit ran $1.4 trillion through June. If that isn't credit expansion divorced from real constraints, the term has no meaning.