"We are in an Inflate-or-Die trap. No one wants to face the music and admit that the economy has been phonied up with fake money, unpayable debt, and falsified prices.
Nobody wants to go through the pain and humiliation of rehab. So what's the alternative? Inflation – more debt, more phony prices, and more fake money. For the last 30 years, the Federal Reserve added money via underpriced short-term loans. Speculators, banks, and insiders took the money and used it to run up stock and bond prices. The rich got much richer; the poor stayed poor. Almost no one complained, because they were told that the 'wealth effect' was making us all better off....Now, we are approaching a new stage. With Biden tainted by Ukraine... and Bernie by age and infirmity... Elizabeth Warren is the likely Democrat nominee....Ms. Warren pretends to be smart, well-informed, and sophisticated. She believes she is on top of the issues, at home in university coffee shops, and at ease with the cognoscenti, literati, and transgenderati. Mr. Trump, on the other hand, is a pro-wrestling fan... a tough, street-smart hustler who doesn't pay his bills, doesn't read books, and doesn't think he needs to study issues in depth. But when push comes to shove in the next crisis, both Warren and Trump will push in the same direction: towards more inflation....No candidate – neither Republican nor Democrat – is proposing to return to honest money, market-set price signals, and balanced budgets....We have a president who thinks he knows better than the market where interest rates should be...and a leading lady on the Democrat side who thinks the whole economy can be marshalled to correct the world's injustices....Some say Ms. Warren is 'unelectable.' But they said that about Mr. Trump too."