August 19, 2014 – Bob Wenzel, editor and publisher of EconomicPolicyJournal.com and the EPJ Daily Alert, discusses the truth of the Federal Reserve and our economy on The Tom Woods Show.
From the discussion:
“Basically what happens when the Fed prints money, it generally goes into the capital goods sector. When I say the capital goods sector, I’m thinking the housing market, the stock market—all of the places where you are seeing prices increase now. It’s not that there isn’t any increases. It’s in the capital goods sector. As long as that continues, that sort of props up that area. At some point the Fed, or any central bank, stops printing money because inflation gets too crazy, and they’re fearful, and then you have the collapse because you don’t have the money flowing into that sector anymore.”
Do you think that, even if inflation doesn’t explode in the next year, the Federal Reserve is damaging the economy?