An explanation of the financial crisis for everyone: Linda is the proprietor of a bar in Cork. In order to increase sales, she decides to allow her loyal customers – most of whom are unemployed alcoholics – to drink now but pay later. She keeps track of the drinks consumed […]
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Banks, economic interventionism and the cause of the credit crisis
(This post is a precis of Huerta de Soto’s Money, Bank Credit and Economic Cycles pp650-653, presenting an argument which was famously expounded by von Mises in Socialism. Among the young idealists who were attracted to socialism after the Great War, who came through these arguments expressed in full to […]
Read MoreGordon Brown, the G20, hyperinflation and economic incompetence
Gordon Brown promises increased economic intervention by the G20, including sales of gold reserves, and the emergence of “a new world order”: Janet Daley looks for comfort: Gordon Brown has announced – in his best portentous tones – that the G20 summit concluded that “global problems require global solutions”. What the summit actually […]
Read MoreThe End of Mainstream Economics: An Interview with Gunnar Tómasson
From an interview with ex-IMF economist Gunnar Tómasson: Does this mean that generations of students have been brought up on nonsense ideology? For this is ideology, of course. Gunnar: Yes, nonsensical ideology. The root of the problem goes back to a point made in the mid-19th century by John Stuart […]
Read MoreMeasures of the money supply
A dynamic chart showing the various measures of the money supply is available at mises.org: The True Money Supply (TMS) was formulated by Murray Rothbard and represents the amount of money in the economy that is available for immediate use in exchange. It has been referred to in the past […]
Read MoreAnthony Evans: Quantitative easing is an exotic label for a discredited policy
Leading British Austrian-school economist Anthony Evans writes on QE: Economists tend to define QE as when the central bank conducts open-market operations to buy government and corporate securities using newly created money. Many economics textbooks fail to mention QE, suggesting that this is a new and extreme form of monetary […]
Read More“QE” via Stephanie Flanders’ Stephanomics
Via BBC NEWS | The Reporters | Stephanie Flanders’ Stephanomics: Later today, all the signs are that the MPC will release a statement saying that they have authorised the Bank of England to start buying government and corporate securities on its behalf – paid for with money it has created […]
Read MoreBank of England set to pump cash into economy
With the Bank of England set to create new money out of nothing, I offer pointers to two articles which explain how this increase in the money supply will further impoverish the poor and those on fixed incomes, and how the move will diminish the chances of a sustained recovery. […]
Read MoreThe road to hell is paved with…
Good intentions, of course. Chris Huhne proposes to introduce a bill to repeal the legislation that has stripped away our rights. So far, so good: There has always been a problem for civil libertarians. The sacrifices of freedoms made by successive governments often seem small, particularly when they are pushed […]
Read MoreMoney, Bank Credit and Economic Cycles
Jesus Huerta De Soto’s book, “Money, Bank Credit and Economic Cycles” arrived today, all 875 pages of it. It is, apparently: by far the most thorough treatment in print of Austrian ideas on banking and the business cycle It looks insightful already (from the preface to the second, 2001, edition): […]
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