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The ECB’s bond-buying programme – “a grave menace to our civilisation”?

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The European Central Bank has announced a programme of bond-buying of €60 billion a month, to be carried out at least until end-Sept 2016. Monetary policy around the world remains in the midst of a remarkable experiment: money creation is expected sustainably to solve real economic problems. It is possible that there is something dangerously wrong with mainstream economic thought. Hayek’s conclusion to The Pure Theory of Capital is a spectacular rant against those economists who consider only the short-run, surface […]

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Three videos to start the Autumn

On levels of debt: On the madness of QE and the current economic consensus: On the battle of economic ideas:

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The awful unspoken truth about QE

Via Conservative Home’s blog The Deep End, an interesting question about QE: If the Government is just going to print money, why can’t we have some? Of course, if you started to give the cash directly to the people, then they might finally understand that our entire economic system runs on funny money. And who knows what would happen then? Henry Ford is supposed to have answered their question: It is well enough that people of the nation do not understand […]

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The triumph of politics » The Cobden Centre

At The Cobden Centre, Detlev Schlichter explains that, The biggest threat to your property and to your individual liberty does not come from markets and not even from the bankers. It comes from politics. I feel sure he is right. We’ve had decades of excessive political promises paid for by high taxes on people of ordinary incomes, deficit spending, national debt and currency debasement. That has inevitably caused a financial, economic and social crisis. And yet still it seems politicians and […]

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The weather. QE. How can clever people be so wrong?

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As The Telegraph reported, in March the Met Office “slightly favoured drier than average conditions for April-May-June”. Yet we’ve had more rain than since records began. How could clever people be so wrong? Famously, the climate is a complex system. The usual example of how small changes in initial conditions can lead to large changes later is the theoretical hurricane caused by a butterfly flapping its wings. Complex systems can appear chaotic: the way they develop is so sensitive to their every detail […]

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Monetary activism caused the crisis and may cause a worse one later

Last night in the Budget debate, I set out how “monetary activism”, which is one of the pillars of the Government’s strategy, could go wrong: This is a Budget of fiscal conservatism and monetary activism. It is a Budget, above all, of economic expectations, setting out to people that we will reward work, support families, help those looking for work, back business and back aspiration. In the short time available to me, I would like to speak directly to the […]

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More QE? Hold tight for a worse crisis later

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 means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary […]

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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: Governments achieve rising prices by encouraging the supply of new money.  This new money comes from the central bank via its control of the banking system.  The first users of […]

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First 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 first benefit at the expense of those receiving the money last. “The fiat dollar is an ‘elite’ system,” Jim Grant told the Wall Street Journal recently, “and Wall Street is […]

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Must read, paywall or not: Fame & fortune: Why I bet the ranch on cattle

In today’s world it’s impossible to be a saver. You’re forced to be a speculator because cash is being undervalued by governments through quantitative easing (QE) [printing money]. I buy hard assets, such as commodities, although there are few bargains anymore. via Fame & fortune: Why I bet the ranch on cattle | The Sunday Times.

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