Article Review #1: Keynesian Chorus Cackling Like Chicken Little

David Stockman criticizes a bunch of panicked economists arguing the Fed had tightened too much. In other words, the Fed monetary policies make the cost of money "tight", raising short-term interest rates to increase the cost of borrowing and reduces the attractiveness of it. Even though today negative real interest rates are at -1.52% compared to 1990s +2.13%, a group of economists consider today's negative real interest rates to be tighter than 30 years ago. However, all their claims are based off the Goldman Sachs Financial Conditions Index, which is based off four factors: interest rates, credit spreads, equity market prices and the value of the US Dollar. This index was formed by a chief economist in Goldman Sachs who basically informed Alan Greenspan when his policies were in favor for the Wall Street's interests. Basically Goldman Sachs had created this relatively useless economic index to tell the Fed not to tighten so they can protect their own financial interests. This has played a large role in the Fed's actions, resulting in cutting or holding the market rates constant. Even as the Fed prints more money with each bubble cycle of the economy, the growth of the business system actually slowed down, because Washington plays with the numbers a little bit before coming out with a report that national income and product accounts is the real truth. It doesn't reflect the actual truth because playing with the numbers to create appearance of growth does not hide the numbers at the cash register. From this statistical nonsense, many households are stuck in debt and penalties based on what the powerful individuals on Wall Street want. In this situation, with no way out, an impending crash is waiting and it is caused by the artificial monetary bubble we created. It has happened in the spring of 2000 and the fall of 2008 and it will happen again. How can people stop that?