The post As Milton Friedman Did, Trump Thinks The Fed Can Overcome Bad Policy appeared on BitcoinEthereumNews.com.

Notorious gangster Al Capone attempts to help unemployed men with his soup kitchen “Big Al’s Kitchen for the Needy.” The kitchen provides three meals a day consisting of soup with meat, bread, coffee, and doughnuts, feeding about 3500 people daily at a cost of $300 per day. Bettmann Archive Thoroughgoing Keynesian Ben Bernanke once quipped to Milton Friedman (1912-2006), “You’re right, we did it. We’re very sorry.” What did they or “we” do? According to Friedman, the Fed failed to increased the so-called “money supply” in the 1930s, thus the economic downturn. Bernanke and Friedman’s incorrect analysis was rooted in the Keynesian notion that governments have resources. They don’t. Just as governments can only spend money insofar as they extract it from the private sector first, creations of government like the Federal Reserve can’t increase money in circulation that only circulates insofar as there are market goods, services and labor to exchange. In other words, money in circulation is a mirror into production precisely because without production there’s no money circulating. No doubt some reading this will say governments can and do “print money” with abandon, and while true, the latter is not the same as increasing money in circulation. And it’s certainly not evidence of a central bank or monetary authority increasing so-called “money supply.” It’s not even close, and it explains why dollars referee exchange globally and in countries where the official currency is something else entirely. It’s markets at work. Yes, governments can once again print money, but only producers decide what monetary mediums circulate. And their production dictates the amount circulating. Nothing else. Friedman claimed, and his myriad disciples claim to this day that the Fed once again caused the Great Depression through a failure to increase the so-called “money supply.” Friedman made, and they make…

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Filed under: News - @ September 14, 2025 2:21 pm