BEVERLY HILLS, CA — Taylor Swift was visibly shocked and stunned at the Golden Globes this year when Selena Gomez came over to her table to explain how the Federal Reserve causes the boom-and-bust business cycle through the central banking system's manipulation of interest rates and fiat currency.
The moment was caught by the 37 cameras trained on Taylor Swift's table to capture her every reaction throughout the night's proceedings. In the now-viral moment which has been immortalized forever in GIF form, Taylor Swift was seen gasping in reaction to hearing for the first time that inflation, as defined by Ludwig von Mises, is actually the increase in the supply of money and not the resultant increase in prices and that when central banks inflate the currency they artificially stimulate economic activity creating malinvestments.
"What? No way!" remarked Taylor. "So that is the bubble that has to pop at some point and the Federal Reserve tries to keep the charade going as long as they can with low interest rates and cheap credit?!"
"Yeah, totally," replied Selena. "Interest rates should be set by the amount of real savings in the economy to signal to borrowers and producers of capital goods that consumers have a lower time preference, preferring to spend their money on goods and services later. When the real savings are shown to not be there to justify all this economic activity, all those new industries and consumer products will collapse."
"No way!" said Taylor again. "And Mises wrote about all this in his 1912 Theory On Money And Credit? And Friedrich Hayek won a Nobel Prize in economics in 1974 after advancing this so-called Austrian business cycle theory? No. Way."
At publishing time, Taylor Swift was spotted writing a new song about how she was breaking up with Keynesian economic theory and drawing little hearts in her new journal from the Mises Institute.
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