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The Role of the Leverage Effect in the Austrian Business Cycle heory

Friday, December 26th, 2014 by posted in Banking, Capitalism, Economics.
economist-warns-that-chinas-bear-stearns-moment-may-strike-any-time_teaes

The process through which lax credit conditions cause malinvestments (the nub of the Austrian Business Cycle Theory) is commonly passed over without much ado. In sections 22.2.1 to 22.2.3 of my recent book, Finance Behind the Veil of Money, I

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Hold the Frankincense and Myrrh

Monday, December 22nd, 2014 by posted in Banking, Capitalism, Economics.
camels_teaser

As we approach the end of the calendar year, it is useful to look back at recent events to give us a sense of what the year ahead may hold. Looking back at the past couple of months, two events

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An Unorthodox Solution to the World’s Economic Problems

Wednesday, December 17th, 2014 by posted in Banking, Capitalism, Economics.
Federal_Reserve teaser

We currently face a monumental dilemma. How do we extract ourselves from all this excessive debt without crashing the world economy? There is a solution which is totally counterintuitive: print even more money. In other words, to get out of

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Krugman’s Uncertainty

Thursday, December 11th, 2014 by posted in Banking, Capitalism.
Paul_Krugman

Attending the “Managing the Economy: Main Street, Wall Street and the Federal Reserve” on 9th December 2014, I was able to hear Dr Paul Krugman speak on issues of monetary policy and fiscal policy. Fiscal policy was deemed irrelevant early

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Are these two events linked?

Friday, December 5th, 2014 by posted in Banking, Economics.

From today’s Open Europe news summary: According to documents seen by Reuters, Eurozone finance ministers are considering extending Greece’s bail-out programme, due to end this year, by six months to the middle of 2015. However, a Greek government official insisted that

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Money and the Law

Wednesday, December 3rd, 2014 by posted in Banking, Capitalism, Economics, History.
oil249L_teaser

(Original Italian publication: Movimento Libertario, L’Indipendenza) The modern (or totalitarian) State is founded on two frauds: the fraud of law and the fraud of money. The wielders of political power have replaced the law and money with things they called

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The Politics of Monetary Policy

Monday, December 1st, 2014 by posted in Banking, Capitalism, Economics.
monetary_teaser

This article is excerpted from chapter 3 of Politically Impossible? Suppose an economist is convinced that the most appropriate international monetary system in a civilized age is one in which the measuring rod of money in every country has a

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On the Swiss Gold Referendum

Sunday, November 30th, 2014 by posted in Banking, Capitalism, Economics.

The Swiss gold initiative has come and gone. It can be summarized as much ado about nothing. Even if it had passed, the initiative would have had no real impact on the Swiss National Bank’s ability to print money or

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David Howden: Banking, Free And 100 Percent Reserve

Friday, November 28th, 2014 by posted in Banking, Economics.
David Howden: Banking, Free And 100 Percent Reserve

Dave Howden Lecturing at Rothbard University 2014

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Will someone please stop this man before he hurts himself?

Wednesday, November 26th, 2014 by posted in Banking, Capitalism, Economics.

From today’s Open Europe news summary: Juncker unveils his €315bn investment package for Europe Speaking to the European Parliament this morning, European Commission President Jean-Claude Juncker unveiled his plan for a €315bn investment fund – backed by €8bn from the

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Government debates fractional-reserve banking

Wednesday, November 26th, 2014 by posted in Banking, Capitalism, Economics.

Three cheers to Steve Baker, Conservative MP from Wycombe, for raising the delicate yet important of matter of fractional-reserve banking in Britain´s House of Commons. We are in a debt crisis of historic proportions because for far too long profit-maximising

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The Fraud in Fractional Reserve Banking

Wednesday, November 26th, 2014 by posted in Banking, Economics.
bankvault1_teaser

Suppose you bring a fur coat to a dry cleaner, and discover that the owner allowed his wife to wear it before cleaning it (which is also the subject of an episode from Seinfeld).  Or, suppose you gave your car keys

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The Path to the Perfect Reserve Currency

Tuesday, November 25th, 2014 by posted in Banking, Economics, Politics, Regulation.

Much has been written lately, including by me, about the coming rejection of the dollar as the primary reserve currency of the world’s most important central banks. My prediction is based upon two things: one, that the Federal Reserve is

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Time to Raise Rates?

Tuesday, November 25th, 2014 by posted in Banking, Capitalism, Economics.

Canada emerged relative unscathed from the financial crisis of 2008. Indeed, over the last six years growth has been relatively robust and to venture out in Toronto, Calgary or Vancouver right now one would think they were in the midst

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Hey Austrians, Where Is the Inflation?

Monday, November 17th, 2014 by posted in Banking, Capitalism, Economics.
inflation teaser

Reprinted from Liberty.me Hey Austrians, Where Is the Inflation? Of all the criticisms that Austrian economists receive, this complaint is the most reasonable and legitimate of all. Many Austrian economists (so I’m told) have predicted that when Ben “The Bubble”

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Maastricht Treaty? We don’t need no stinkin’ Maastricht Treaty!

Tuesday, November 11th, 2014 by posted in Banking, Economics, Law, Politics.

From today’s Open Europe news summary: ECB Executive Board member Yves Mersch said yesterday that the ECB will begin purchasing Asset Backed Securities (ABS) next week. He added that, “should the situation deteriorate further”, purchases of sovereign debt remain an

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Yellen and Pope Francis vs. Pareto

Friday, November 7th, 2014 by posted in Banking, Economics.
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Reprinted from Casey Research “The extent and continuing increase in inequality in the United States greatly concern me,” Fed Chairwoman Janet Yellen said last week at a conference on economic opportunity and inequality sponsored by the Federal Reserve Bank of

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In Defense of Peter Schiff

Thursday, November 6th, 2014 by posted in Banking, Capitalism, Economics.
In Defense of Peter Schiff

The financial television channel CNBC has hit hard times. Nielsen ratings show the network’s viewership is at a 21 year low. This is a far cry from two decades ago. The dot-com bubble of the late 90s and early aughts

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The Errors in Liquidity Preferences

Thursday, November 6th, 2014 by posted in Banking, Economics.
wall_street_teaser

The theoretical construct of Keynes’s monetary view of the world is known as the liquidity preferences theory of money. This theory is the foundation of many macroeconomic models and stands in stark contrast to the classical view of interest rates,

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Real-estate Out of Reach of the Super Wealthy

Saturday, November 1st, 2014 by posted in Banking, Economics.

The housing boom is searching for ways to keep going. Prices for many high-end pieces of real estate are now out of reach for even the 1% of the super-wealthy. During the last housing boom, terms were reset for the

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