Friday, June 2, 2017

Austrian-Lites Choke: Unemployment Drops to a 16-Year Low

No, the Fed has not had to reverse any of its recent interest rate hikes, The Fed did not have to go negative with interest rates,

Austrian-lites who expected the Fed to take such action after the first Fed rate hike of this cycle in December 2015 simply failed to understand that the Federal Reserve manipulated economy is a boom-bust economy. We are in the distorted boom phase.

The Fed has not "run out of bullets." The Fed can raise rates from near zero, during this cycle, without crashing the economy.

We have had three rate hikes in this cycle and the stock market is at record highs, housing prices continue to climb and the latest data show unemployment at a 16-year low. This is not what a recession looks like.

Chart via MarketWatch


  1. Talk about different movies, Robert. Other sources paint a very different picture. Nice work to spin this as positive.

  2. Please name names. I love your work but you are doing what we generally dislike: strawman and generalizations.

    1. Are you new here? RW has been writing about Austrian-lites for 3 or 4 years. Generally they are readers who make asinine claims and get all pouty when RW explains why they are wrong. Most of them have stopped commenting or reading by now since they have been proven wrong so many times. I don't know where they got their notions about the economy, but they came off as self important know it alls who were just making up as they go along.

      Now the most you get are but but there are 2 economies. I think some people can't wrap their head around the fact some regions of the country are really boom. Some places it sucks. I am in fly over country and we are definitely in the boom.

  3. Again, there are two different economies. The one near the fed money taps you live in and the one far away from them where I am. The disparity between them is huge.

  4. Does transportation include Uber and Lyft?
    Is education separate from government?
    How is going from one full-time to two part-time accounted?
    How much of healthcare is due to government subsidizing?