Peter St. Onge

So they jack up rates.

That ends up strangling the economy.

That then is a recession.

Whereas in the Keynesian model, the idea is that everybody's kind of chugging along, doing great.

They're really happy.

They're really optimistic.

And all of a sudden, they're really pessimistic.

And it turns out that a lot of them made a mistake.

So the idea would be that everybody had a really good IQ in 2005, but then everybody got suddenly stupid in 2008, and all the businesses went under.

It's comical.

I mean, it's a stupid theory, and it has existed for centuries in inflationism.

but it survives because it's extremely useful to governments.

It says that the market is the problem.

The stupid investors are the problem.

The stupid businessmen are the problem.

And so the government, our wise overlords, have to come in pure of intent and fix it all.

So once I understood...

Austrian or classical economics is very easy.

You look for the interest rate, you look for liquidity.

Since 2008 crisis, the Fed pivoted now to where it dumps money in the markets, does it using something called quantitative easing, where it basically prints the money in the basement.