The front-page headline in the Wall Street Journal on October 14 says it all, “Inflation Is Back at Highest in over a Decade.” The Labor Department reported that the Consumer Price Index (CPI) increased 5.4 percent from a year ago. This should not have been a surprise to Federal Reserve chairman Jerome Powell and his fellow board members nor to its hundreds of PhD economists who drill into the economic data to forecast the economy.

In 2020, when the US economy imploded under the lockdown orders of the federal government and state governors, the Federal Reserve’s balance sheet exploded from $4.17 trillion in February 2020 to $8.48 trillion in October 2021. In other words, the Federal Reserve bought more than $4 trillion in mortgage-backed securities and US Treasury debt in less than two years.

This increase in the Fed’s balance sheet in eighteen months is more than was purchased in the first hundred-plus years of its existence. This unprecedented “money printing” has had enormous consequences for the economy and the American people, not the least of which is accelerating price inflation.

As the new money created by the Fed diffuses throughout the economy prices rise in an uneven fashion. Economic sectors and geographic regions are affected differently depending on how the recipients of the newly received dollars spend them, an observation I identified forty years ago in my doctoral dissertation on the spread of inflation through the economy.

MyPillow Supply Chain

The broad measure of the money supply, M2, consists of cash, checking accounts, savings accounts, small denomination time deposits, and money market funds. M2 increased from $15.4 trillion in February 2020 to nearly $21 trillion dollars in September 2021—nearly a 33 percent increase in liquid assets that the American people have at their disposal to buy goods and services in the marketplace.

Any PhD economist should have been able to conclude that opening up the monetary spigot full blast to “stimulate” because of the lockdowns would raise prices down the road. We are now down that road. Price inflation will probably continue for at least two more years. Once price inflation accelerates as it did in the mid- to late 1960s and then again in the early and late 1970s and early 1980s, it takes “tight money” by the Fed to slay the price inflation dragon.

Forty years ago was the peak of the double-digit inflation that began in the mid-1970s, when the Federal Reserve inflated the money supply to boost the economy after the 1973–75 deep recession. In addition to the recession, double-digit inflation rocked the US economy. In 1979, to get inflation under control President Jimmy Carter appointed Paul Volcker Fed chairman, who continued his tight money policy after Ronald Reagan was elected in November 1980.

The fed funds rate (the rate at which banks borrow from each other overnight, controlled by the Fed) climbed to 22 percent in December 1980. Three-month Treasury bill rates topped out at 16.30 percent in May 1981, while the inflation rate was about 10.00 percent. In short, savers were getting a substantial real rate of return on their T-bills and their money market accounts.

Since the early 1980s the fed funds rate has been dropping, not in a straight line, but more like a staircase. Currently, the fed funds rate is a tad above 0 percent while the inflation rate has clearly accelerated in the past year to more than 5 percent. The interest rate on bank money market accounts is 0.02 percent at my bank. Inasmuch as I have a substantial amount of cash reserves—funds for the proverbial rainy day—I and tens of millions of Americans are losing hundreds of billions of dollars in interest due to the Federal Reserve’s super easy money policies.

To rectify this highway robbery I propose the Congress pass and President Biden sign the Savers’ Protection Act. The act would state that if the interest rate on savings accounts, money market funds, and other short-term instruments are less than the rate of inflation, savers will deduct the lost savings on their tax return. For example, if someone has $100,000 in a money market fund the account should pay at least the rate of inflation for the year. Today that would be about $5,000. I propose a tax credit of at least 50 percent of the lost interest, $2,500 or more.

If the federal government does not protect the American people from the Fed’s reckless monetary policies, which have caused prices to accelerate and have blown up another financial bubble, then the public “could go on strike” and withdraw their money until banks pay us a market rate of interest. As every undergraduate business student learns in a corporate finance course, the nominal rate of interest on a risk-free asset, such as a bank account, equals the real rate plus the inflation premium. The American people should earn 7 percent on their savings accounts. I would be content at this time to earn the inflation rate on my money market account.


Contact Murray Sabrin

Dr. Murray Sabrin retired on July 1, 2020 as Professor of Finance. On January 25th 2021, the Board of Trustees awarded Dr. Sabrin Emeritus status for his scholarship and professional contributions during his 35-year career. His book, Universal Medical Care: From Conception to End-of-Life: The Case for a Single Payer System, calls for the individual or family to be the single payer to restore the doctor-patient relationship. His latest book, Navigating the Boom/Bust Cycle: An Entrepreneur’s Survival Guide, was published in October 2021. Sabrin is the author of Tax Free 2000: The Rebirth of American Liberty, a blueprint on how to create a tax-free America in the 21stcentury, and Why the Federal Reserve Sucks: It Causes, Inflation, Recessions, Bubbles and Enriches the One Percent, which is available on Amazon.

Image by Dan SmithRdsmith4, CC BY-SA 2.5, via Wikimedia Commons. Article cross-posted from Mises.


Big Pharma’s Five Major Minions that Everyone, Vaxxed or Unvaxxed, Must Oppose

This is not an “anti-vaxxer” article, per se. It’s a call for everyone to wake up to the nefarious motives behind vaccine mandates, booster shots, and condemnation of freedom.

The worst kept secret in world history SHOULD be that the unquenchable push for universal vaccinations against Covid-19 has little if anything to do with healthcare and everything to do with Big Pharma’s influence over the narrative. Unfortunately, that secret has stayed firmly hidden from the vast majority of people because of the five major minions working on behalf of Big Pharma.

What’s even worse is the fact that Big Pharma’s greed is merely a smokescreen to hide an even darker secret. We’ll tackle that later. First, let’s look at the public-facing ringleaders behind the vaccine push, namely Big Pharma. But before we get into their five major minions, it’s important to understand one thing. This is NOT just an article that speaks to the unvaccinated. Even those who believe in the safety and effectiveness of the vaccines must be made aware of agenda that’s at play.

Let’s start with some facts. The unvaccinated do NOT spread Covid-19 more rampantly than the vaccinated. Even Anthony Fauci acknowledged the viral load present in vaccinated people is just as high as in the unvaccinated. This fact alone should demolish the vaccine mandates as it demonstrates they have absolutely no effect on the spread of the disease. But wait! There’s definitely more.

This unhinged push to vaccinate everyone defies science. Those with natural immunity may actually have their stronger defenses against Covid-19 hampered by the introduction of the injections which fool the body into creating less-effective antibodies. Moreover, the push to vaccinate young people is completely bonkers. The recovery rate for those under the age of 20 is astronomical. Children neither contract, spread, nor succumb to Covid-19 in a statistically meaningful way. What they DO succumb to more often than Covid-19 are the adverse reactions to the vaccines, particularly boys.

All of this is known and accepted by the medical community, yet most Americans are still following the vaccinate-everybody script. It requires pure cognitive dissonance and an overabundant need for confirmation bias to make doctors and scientists willingly go along with the program. Yet, here we are and that should tell you something.

Before I get to the five major minions of of Big Pharma, I must make the plea for help. Between cancel culture, lockdowns, and diminishing ad revenue, we need financial assistance in order to continue to spread the truth. We ask all who have the means, please donate through our GivingFuel page or via PayPal. Your generosity is what keeps these sites running and allows us to expand our reach so the truth can get to the masses. We’ve had great success in growing but we know we can do more with your assistance.

Who does Big Pharma control? It starts with the obvious people, the ones who most Americans believe are actually behind this push. Our governments at all levels as well as governments around the world are not working with Big Pharma. They are working for Big Pharma. Some are proactive as direct recipients of cash. Others may oppose Big Pharma in spirit but would never speak out because they know anyone who does has no future in DC.

This may come as a shock to some, but it’s Big Pharma that drives the narrative and sets the agenda for the “experts” at the CDC, FDA, WHO, NIH, NIAID, and even non-medical government organizations.

Most believe it’s the other way around. They think that Big Pharma is beholden to the FDA for approval, but that’s not exactly the case. They need approval for a majority of their projects, but when it comes to the important ones such as the Covid injections, Big Pharma is calling the shots. They have the right people in the right places to push their machinations forward.

That’s not to say that everyone at the FDA is in on it. Big Pharma only needs a handful of friendlies planted in leadership in order to have their big wishes met. We have seen people quitting the FDA in recent weeks for this very reason. The same can be said about the other three- and five-letter agencies. Too many people in leadership have been bribed, bullied, or blackmailed into becoming occasional shills for the various Big Pharma corporations. Some have even been directly planted by Big Pharma. That’s the politics of healthcare and science that drives such things as Covid-19 “vaccines.”

Read the rest of this story, but please be sure to donate first if you can.

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