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There Was No Contagion

Thursday, October 23rd, 2014 by posted in Banking, Capitalism, Economics.

If you use the word “contagion” these days, people are likely to think you’re talking about ebola. Backup five years ago, and contagion was the buzzword to describe the financial crisis. The European government bond market was falling apart, and

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Fractional Reserve Banking, the Euro, and the benefits of a New German Deutsche Mark

Sunday, October 19th, 2014 by posted in Banking, Economics.

In this thirty minute interview on Power Trading Radio I discuss fractional reserve banking, the euro, and the beneficial effect of a reinstated German deutsche mark. Interview with Patrick Barron on Power Trading Radio Patrick Barron is a consultant to

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The Fed’s Price Control and Pavlov’s Traders

Saturday, October 18th, 2014 by posted in Banking, Economics.

Pavlov observed that his dogs would salivate when they saw anything associated with food. He introduced sounds into this association and dogs would salivate upon hearing the sound. And so it goes with the Federal Reserve and stock traders. On

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The IMF and Austrian Theory

Friday, October 17th, 2014 by posted in Banking, Capitalism, Economics.
IMF Greece Financial Crisis

Back in the early 1960s, financial journalist Henry Hazlitt warned against efforts to create an international system to help facilitate the smooth transfer of currencies. Representatives from the world’s leading governments were attempting to increase liquidity in global markets. They

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If Something Can’t Go on Forever, It Won’t

Thursday, October 16th, 2014 by posted in Banking, Economics, Regulation.
debt_teaser

Reprinted from the Pembroke Daily Observer There is an old saying that if you owe the bank ten thousand dollars and can’t pay, you are in trouble, but if you owe the bank ten million dollars and can’t pay, the bank

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Inflation Destroys Savings

Monday, October 13th, 2014 by posted in Banking, Capitalism, Economics.
weimar_inflation_teaser

[Excerpted from Ludwig von Mises on Money and Inflation: A Synthesis of Several Lectures, compiled by Bettina Bien Greaves. This lecture was given at the Foundation for Economic Education (FEE).] Reprinted from Mises.org Everything that is done by a government

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A Sensible Central Banker?

Saturday, October 11th, 2014 by posted in Banking, Capitalism, Economics.

With all the lunacy coming from the world’s central bankers since, well, ever, it’s refreshing to hear something (anything!) sensible coming from one of them finally. Bank of Canada Governor Stephen Poloz’s recent announcement that the BoC would stop using

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An opportunity to educate the public is squandered

Friday, October 10th, 2014 by posted in Banking, Economics, Law, Politics.

From today’s Open Europe news summary: Hans-Werner Sinn: Some countries should be allowed to temporarily leave the euro Open Europe yesterday hosted the launch of Professor Hans-Werner Sinn’s new book, ‘The euro trap: on bursting bubbles, budgets and beliefs’. At

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A way to look at Fed mismanagement of the dollar

Thursday, October 9th, 2014 by posted in Banking, Economics.

Here’s an interesting little calculation of how many dollars the Fed would have to charge for an ounce of its gold reserve in order to cover all of M1. (M1 is the narrowest definition of money, which includes cash and

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German Understatement

Monday, October 6th, 2014 by posted in Banking, Economics.

From today’s Open Europe news summary: Germany hits out at ECB plans to buy asset backed securities ECB plans to purchase Asset Backed Securities (ABS) have taken a lot of criticism in Germany, with Bundesbank President Jens Weidmann warning that

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Monetary One World Order

Monday, October 6th, 2014 by posted in Banking, Capitalism, Economics.
yellen_teaser

Reprinted from Casey Research When you mumbled the Pledge of Allegiance in grade school, you likely didn’t think you’d grow up to be taxed to death and a pawn in central-banker economic chess games. If you’re old enough, the dimes

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We’ll buy your bonds only if we give you the money to repay us

Friday, October 3rd, 2014 by posted in Banking, Economics.

From today’s Open Europe news summary: ECB disappoints markets by holding policy The ECB yesterday held interest rates and revealed the details of its purchases of covered bonds and asset backed securities – the former will begin in the second

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The Fed vs. Praxeology

Thursday, October 2nd, 2014 by posted in Banking, Economics.
federal_reserve1_teaser

Reprinted from Casey Research Janet Yellen must feel like she’s herding cats. The Federal Reserve is keeping interest rates at zero, thinking the common man and woman will spend money or buy stocks. Dr. Yellen wants us all to get

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Century of Enslavement: The History of The Federal Reserve

Wednesday, October 1st, 2014 by posted in Banking, Capitalism, Economics.
Century of Enslavement: The History of The Federal Reserve

What is the Federal Reserve system? How did it come into existence? Is it part of the federal government? How does it create money? Why is the public kept in the dark about these important matters? In this feature-length documentary

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Will an ordinary German citizen challenge the lawless ECB?

Tuesday, September 30th, 2014 by posted in Banking, Economics, Law, Politics.

From today’s Open Europe news summary: German economist Hans-Werner Sinn writes in the FT, “Deflation is not a danger for southern Europe, but an essential precondition for restoring competitiveness.” He describes the ECB’s latest asset purchase plan as “nothing less than

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The World´s Largest Subprime Debtor

Wednesday, September 24th, 2014 by posted in Banking, Economics.

Do you have a friend who consistently borrows 30% of his income each year, is currently in debt about six times his annual income, and wanted to take advantage of short-term interest rates so that he needs to renegotiate with

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Billionaires Load Up on Cash

Tuesday, September 23rd, 2014 by posted in Banking.

One of Ludwig von Mises’ most insightful parts of Human Action is his discussion on the reason to hold a cash balance. By using his construct of the “evenly rotating economy”, Mises shows that the only reason why an individual

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As Germany loses battle for ECB, QE goes global

Monday, September 22nd, 2014 by posted in Banking, Capitalism, Economics.
ecb_teaser

Reprinted from DetlevSchlichter.com What is Super Mario up to? First, he gave an unexpectedly dovish speech at the Jackson Hole conference, rather ungallantly upstaging the host, Ms Yellen, who was widely anticipated to be the most noteworthy speaker at the

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IMF: QE Encourages Risk

Thursday, September 18th, 2014 by posted in Banking, Economics.

Recently the Fed released research stating that it encouraged moral hazard and risk taking with its QE programs. Never one to fall behind, now the International Monetary Fund is in on the trick. After promoting QE for years (see here

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Europe decides to eat its capital

Monday, September 15th, 2014 by posted in Banking, Economics.

Re: The Death Spiral of Capitalism, by Martin Hutchinson We now see why the profligate countries of the European Monetary Union allowed the European Central Bank to institute a negative interest rate against reserves AND now have allowed it to buy

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