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Robert Wenzel (Economist)
Robert Wenzel (Died May, 26, 2021) was an American economist of the Austrian School and a political theorist. He was the editor and publisher of the websites Economic Policy Journal and Target Liberty. He was an anarcho-capitalist and advocated for a fully privatized society where the owners of the property set the rules. His political philosophy is detailed in his book, "Foundations of Private Society Theory: Anarchism for the Civilized Person".

Financial Forecast
In the summer of 2008, Wenzel began to warn that a finical crisis was coming due to the Federal Reserve slowing the money supply growth. On August 29th 2008, Wenzel stated : It is now clear that Ben Bernanke has no clue as to how to control the money supply.

We have been commenting in recent weeks regarding the slowdown in money supply. It has been growing at approximately 2.5% (M2SA) over the last three months on an annualized basis, earlier this year it was growing at double digit rates. This is a dramatic downturn. The numbers out yesterday show no end to the money growth slowdown, in fact, three month annualized growth (M2SA) has dipped further to 2.2.%.

While there is a lot to be said for a no growth money supply that results in a recession to clear the system, the Fed doesn't believe this and neither does Bernanke. They are eternal money pumpers, who consistently want to prop up the economy and never have a recession. Thus, it is truly bizarre that they would allow money growth to collapse. They simply have their eye on the wrong ball. They are watching the Fed Funds rate and believe they are providing huge amounts of liquidity to the system because of the 2.0% Fed Funds target. But the fact that money supply at this target rate is not climbing suggests that the real interest rates must be lower.

Indeed, the actions of M1 suggest this is exactly the case. Since what is climbing is M1. Three month annualized M1SA is growing at 5.8%. And what is exploding is demand deposit money (a part of M1). Three month annualized demand deposits are growing at 9.5%. This suggests there is huge fear in the system, and depositors prefer keeping their money in demand deposits as opposed to M2 components such as saving accounts and retail money market funds, which are displaying no growth. Clearly, this situation tells you that depositors prefer what they perceive is safety over yield.

Only a much lower interest rate would reverse the current situation, or perhaps non-sterilized loans and purchases of bank collateral provided by those using the Term Auction Facility. If this isn't done soon then the economy and stock market will worsen by leaps and bounds, including a major eye opening stock market crash. At the invitation of the New York Federal Reserve Bank, Robert Wenzel spoke and had lunch in the bank's Liberty Room on April 25, 2012 to explain his methodology in predicting the financial crisis of 2007–2008. He detailed his speech and experience in his book, "The Fed Flunks". He urged those in attendance of his speech to shut down the Federal Reserve since it was the moral and ethical thing to do.