From Mises’ Human Action: The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no […]
Read MorePost Tagged with: "Money"
More QE to be discussed today
If the Bank of England today decides on more Quantitative Easing, I’ll produce an article explaining why they are wrong, why QE is a grave source of injustice and how it will fail to revive the economy. In the meantime, here’s a flavour from James Tyler at The Cobden Centre: […]
Read MoreOperation Twisted Logic – Detlev Schlichter
Via Operation Twisted Logic, an article by Detlev Schlichter, author of Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown: … Like all state bureaucracies, the Fed is in fact struggling with problems that are predominantly of its own making. The Fed is the reason we are in […]
Read MoreNiall Ferguson reviews “Lords of Finance”
Via The great liquidity crisis – 94 years ago, Niall Ferguson provides an instructive review of Lords of Finance: 1929, The Great Depression, and the Bankers who Broke the World: By the summer of 1931, however, it was dawning even on Norman that the world economy was falling off a cliff. […]
Read MoreBBC News – Make foreign currencies legal in UK – Douglas Carswell
Via BBC News – Make foreign currencies legal in UK – Douglas Carswell: A Conservative MP is to call for a basket of foreign currencies to be made legal tender in the UK. Such a move would protect savers by allowing them to hold the currency least likely to be […]
Read MoreConservativeHome’s Platform: Steve Baker MP: The Fed is very nearly bust and it is probably not alone amongst central banks
A review of the US Federal Reserve’s own document: “FEDERAL RESERVE statistical release, H.4.1: Factors Affecting Reserve Balances of Depository Institutions and ?Condition Statement of Federal Reserve Banks”, issued on August 23rd 2011, reveals some interesting information about the state of the Federal Reserve, the US central bank: it’s very […]
Read MoreArticle on the money supply at thejc.com
Via Honesty is best policy | The Jewish Chronicle, my article on measuring the money supply: Ask economists how much money there is and you will get many answers. You know money is what you can exchange for real goods and services, but economists often include things like time deposits, which […]
Read MoreFirst in Line for New Money – Doug French – Mises Daily
Via First in Line for New Money – Doug French – Mises Daily: Increases in money aren’t sprinkled from the sky, floating indiscriminately into whoever’s hands are in the right place at the right time. Money-supply increases occur through the commercial banking system and Federal Reserve. Those who receive the money […]
Read MoreCredit expansion and the trade cycle
Via XX. INTEREST, CREDIT EXPANSION, AND THE TRADE CYCLE – – Mises Institute, which I recommend in full, old advice on our present situation: The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, […]
Read MoreDetlev Schlichter: Forty Years of Paper Money – WSJ.com
Forty years ago today, Nixon closed the gold window, so that the dollar could not be redeemed. That created the global system of paper monies which is now in so much trouble. At the Wall Street Journal, Detlev Schlichter presents Forty Years of Paper Money: The global paper standard has lasted 40 years […]
Read More
