Say’s Law, Credit Expansion & the Business Cycle

By Russell Lamberti Robert Blumen has an excellent post at titled “Say’s Law and the Permanent Recession” which we linked to last week. Blumen’s basic case is that the US economy has effectively been in a prolonged recession since around the turn of the century. This article is not about Blumen’s “permanent recession” thesis per [...]

The problem when fractional banks still work


Since the financial crisis in 2008/09 the Federal Reserve has printed trillions of dollars and purchased assets with them, mostly US government bonds and mortgage-backed securities.  This has caused the assets on the Fed’s balance sheet to swell by around $2.5 trillion since the collapse of Lehman Brothers. Operations of this magnitude have caused the [...]