On December 11th, after trying to explain how it's not true that the Russians hacked to stop Gary Johnson by helping Trump, Alex Jones accused the Fed of wanting to save the economy from Donald Trump. I've explained in prior commentaries how the Fed inflates to suppress interest rates, how interest rates are the discount rate of future goods against present goods, and why artificially suppressed rates are injurious to the economy. Pursuant to Alex Jones, Donald Trump wants the Fed to keep rates low, while the Fed, motivated by a desire to crash the economy, wants to force up interest rates. If this is true, rather than a deliberately misleading signal being sent by Trump, then Alex Jones and Donald Trump are slow learners. You will understand what I mean by Googling the words: analyzing faux news alex jones.
I know Alex's economics have always deviated in key areas (e.g. saying Glass-Steagall is the fix for the financial system, while faulting the Fed not for creating inflation but for being a "private, for profit" enterprise). Can Alex really be this cognitively deficient? Does he really not understand that the Fed suppressing interest rates with loose monetary policy is the ultimate form of corporate welfare for the "big bad banks" he always talks about? When I hear Alex say this, the first thing that goes through my mind is that means Trump wants to DESTROY the economy while the Fed wants to SAVE the economy (perhaps unintentionally). Paradoxically, the Fed, while wanting to destroy the economy, actually ends up saving the economy! Alex's comments begin at about the 5:00 minute mark in the video below.
