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Are We In The Largest Bubble in History? – An Austrian School Analysis by Steve Baker MP & Max Rangeley

It is often discussed how central banks saved the world economy following the 2008 Global Financial Crisis. In reality, monetary policy has created an even larger bubble than that which burst in 2008. But the trend has now been going on for a generation – from the 1980s onwards, every recession has been met by creating an even larger debt bubble. This has been done by cutting interest rates to “stimulate” the economy out of recession, but when they are […]

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Central banking and the economic consensus condemned

Via The Cobden Centre: The absurd tragedy of our situation, explained brilliantly here (albeit in a US context), is astonishing. For a more formal corrective, see this primer.

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Bond bubble burst will gut gilt investors, warns Merrill Lynch – Telegraph Blogs

Compare and contrast: Via Bond bubble burst will gut gilt investors, warns Merrill Lynch – Telegraph Blogs: Never mind what the Bank of England monetary policy committee says about interest rates on Thursday. One of the biggest wealth managers in the world is discretely warning its income-seeking clients to beware of bonds issued by the British Government; generally known as ‘gilts’. Merrill Lynch Wealth Management fears that despite the apparent security of gilts, a combination of rising inflation – already […]

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Mises on inflation and destructionism

In researching a piece on QE, I found this from Mises’ Socialism, which can stand alone for the moment. Here, by “inflation”, Mises means an increase in the money supply, which causes price rises. For Mises, “Destructionism” is the socialist strategy of tearing down the existing order in the hope that the socialist utopia will emerge. The work dates from 1932 and it tells us most of what we need to know today. Inflation is the last word in destructionism. […]

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On printing money and hoping

Via The Cobden Centre, a good article by Liam Halligan, Policy makers must do more than print money and hope for the best: Quantitative easing might seem the easiest option but it is storing up major problems for the future. … Now, the Western world’s policy response amounts to printing money and heaping debts upon debts, while shoving the banking sector’s losses on to the general public – and, particularly, their children and grandchildren. This is perhaps the most systematic […]

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