Today was a full day at the Jackson Hole Summit. The conference took place at the Diamond Cross Ranch in Moran, Wyoming and featured many speakers and several panels of discussion. The main point that came across today was the truth about monetary and fiscal policy.
Dr. Ben Steil talked about the history and legacy of the infamous Bretton Woods financial summit that happened in 1944. During his speech he discussed the historical aspect of the event and how the policies were already unraveling before they truly began in 1961. The policies did nothing to help the economy yet many still believe the impact they had was positive.
A panel discussing “The Monetary Status Quo and Its Consequences” talked about statistics and evidence that shows when interest rates are artificially kept low, employment is also low. While productivity is still rising, wages aren’t rising as fast. Demand for workers is less.
As a result, there are fewer workers working and more capital in the mix. This causes complaining/protesting about the income of owners of capital rising relative to the stagnant wages of workers. This is the ‘income inequality’ that the left often talks about. Interesting it is policies they support that create this affect.
John Fund also spoke about the importance of presidential candidates talking about monetary and fiscal policy. While it may be a complicated subject, it can indeed be broken down into a way that voters understand. Rather than discuss these types of policies, most candidates surround themselves with advisers and consultants that tell them not to get involved in controversy – Fund calls these people ‘The Staff Infection’.
There was another panel of millennials that discussed the problems with monetary and fiscal policy leaving out young people. Young people are far worse off with the current policies in place and will continue to be unless something changes. Unemployment for young people is high and many cannot afford homes or even to move out of their parents’ homes.
The day ended with financial analyst Peter Schiff who was introduced by a video of him saying there would be a recession and that it would last years. It was from an interview back in 2005. Schiff was obviously right. Schiff talked about how the real economy has been contracting this entire time. The federal government can’t raise the interest rates by much because they cannot afford to pay the interest on the debt they owe.
Schiff also talked about the 2008 recession and how it was the market trying to correct itself. Had the market been allowed to correct itself, we may actually be in a real recovery now but the Fed got involved and has created yet another bubble that at some point will have to burst again.
There were speakers from the United Kingdom’s British Parliament as well as Judy Shelton from the Atlas Network. A highlight of the event was George Gilder who was introduced with a clip of Ronald Reagan quoting him.
There will be a dinner with keynote speaker Jim DeMint tonight and another day of speakers and panels tomorrow. What’s interesting is the Central Bankers are having their annual policy summit not too far from where the Jackson Hole Summit is being held. Protesters are there trying to force them not to raise the interest rates. Clearly they do not understand that the very policies they are asking to continue are the ones that have continued to fail this country, including the protesters themselves. Unfortunately they haven’t got honest about monetary and fiscal policy yet.