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How money creation threatens hyperinflation

Sunday, March 29th, 2015 by posted in Economics.

In order to understand the relationship between money creation and the price level, we first need to get some definitions straight. To Austrians the terms inflation and deflation refer to money and not prices. There is no doubt that money

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My letter to the NY Times re: New Pay Day Loan regs will hurt the working poor

Sunday, March 29th, 2015 by posted in Economics, Regulation.

Re: Agency wants to rein in payday loans Dear Sirs: Often payday lenders are the last tool of the working poor to forestall having utilities cut off, having a car repossessed (which can lead to losing one’s job), or even

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The Motte and Bailey Doctrine in Mainstream Economics

Friday, March 27th, 2015 by posted in Economics, Epistemology, Uncategorized.
motte-and-bailey

A “motte and bailey doctrine” is a style of argument (and informal fallacy) that’s based on a motte-and-bailey castle. The bailey is a big courtyard and where people live and work and generally want to be. The motte is a mound

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Are Markets Myopic?

Friday, March 27th, 2015 by posted in Capitalism, Economics.
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Reprinted from the Freeman We often hear that individual investors are myopic. They make decisions based on a relatively short time horizon, so forget about the long run. That’s why we need government officials to step in with regulations, as

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My letter to the NY Times re: Setting the record straight on changes to the price level

Thursday, March 26th, 2015 by posted in Economics.

Re: Eurozone Business Growth Nears 4-year High, by David Jolly Dear Sirs: Once again one of your reporters repeats the mantra that there is a “…problem of declining consumer prices…in the eurozone…”. Problem for whom? Changes in the price level

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How and How Not to Desocialize

Wednesday, March 25th, 2015 by posted in Capitalism, Economics, Politics, Regulation.
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Reprinted from Mises.org Introduction It is generally acknowledged that bureaucrats are obstructing the process, but confusion abounds among free-market proponents themselves. Matters are scarcely helped by the fact that Western economists, to whom the former Eastern bloc is looking for

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A Waste of Time

Tuesday, March 24th, 2015 by posted in Economics, Politics, Socialism.

From today’s Open Europe news summary: Bundesbank proposes new European fiscal authority to replace European Commission Germany’s Bundesbank proposed in its monthly report yesterday to create “a new European fiscal authority which, in the style of independent national fiscal councils,

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Household Debt Soars in Canada, “Stability” at Risk

Tuesday, March 24th, 2015 by posted in Banking, Capitalism, Economics.
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Reprinted from Zero Hedge Debt by Canadian households is a special phenomenon. Statistics Canada reported today that in the fourth quarter, household debt set another breath-taking record. Earlier this month, even Equifax Canada, which is in the business of facilitating

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My letter to the NY Times re: Time for an editorial board reassessment

Monday, March 23rd, 2015 by posted in Economics.

Re: Japan’s Recovery Is Complicated by a Decline in Household Savings, by Jonathan Soble Dear Sirs: Mr. Soble (and your editorial board, I’m sure) can’t seem to make up his mind whether Japan should spend its way to prosperity or

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Illusion of Prosperity

Monday, March 23rd, 2015 by posted in Banking, Economics, History.
Home-Construction_teaser

President Obama and Federal Reserve chair Janet Yellen have recently been crowing about improving economic conditions in the U.S.  Unemployment is down to 5.5% and economic growth in 2014 hit 2.4%. Journalists and economists point to this improvement as proof

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Robert Reich Literally Doesn’t Understand the First Thing About Price of Labor

Sunday, March 22nd, 2015 by posted in Economics, Education.
Reich megaphone

Young people might think of Robert Reich as an annoying guy on the Internet who amasses an astonishing number of Likes and Re-Tweets, considering the number of fallacies in his social media posts. And yet, he actually has an impressive resume, having

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My letter to the NY Times re: Mr. Kuroda has put the cart before the horse

Friday, March 20th, 2015 by posted in Economics.

Re: Japan’s Central Bank Warns of Temporary Return to Deflation Dear Sirs: BOJ governor Kuroda and his supporters should question the very foundation of their beliefs that inflation is “…crucial to rekindling growth…” and that “a ‘deflationary mindset’ is behind

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Decline of the Rule of Law

Friday, March 20th, 2015 by posted in Capitalism, Economics, Law.
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Reprinted from The Freeman Political wisdom, dearly bought by the bitter experience of generations, is often lost through the gradual change in the meaning of the words which express its maxims.  Though the phrases themselves may continue to receive lip service,

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The Federal Reserve Bank Must Be Destroyed!

Thursday, March 19th, 2015 by posted in Civil Liberties, Economics, Foreign Policy, Politics.

“Delanda est in Susidium Foederatum Bank” (The Federal Reserve Bank Must be Destroyed) During the years of the Roman Republic, Cato the Elder ended every speech with the phrase “Delanda est Carthago” (Carthage must be destroyed). Rome had fought two

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Who Protects the Consumer?

Thursday, March 19th, 2015 by posted in Capitalism, Economics.
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Reprinted from Mises.org Consumers are sometimes asked to pay too much for goods. This has been true since the beginning of time. Their great protection against overcharging has been competition. The intelligent shopper can compare price and quality, and go

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My letter to the NY Times re: False love affair with inflation

Wednesday, March 18th, 2015 by posted in Economics.

Re: Asia Rushes to Lower Rates, But Maybe Not Fast Enough by Neil Gough Dear Sirs: In the first two short paragraphs of his article Mr. Gough reveals the premise upon which his title depends. Since his premise is faulty, the

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The Peculiar and Unique Position of Economics

Wednesday, March 18th, 2015 by posted in Economics, History.
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This article is excerpted from Human Action (1949), chapter 37, “The Nondescript Character of Economics.” The Singularity of Economics What assigns economics its peculiar and unique position in the orbit both of pure knowledge and of the practical utilization of knowledge

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World’s Oldest Central Bank Asks Paul Krugman To Shut Up

Tuesday, March 17th, 2015 by posted in Banking, Capitalism, Economics.
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Reported from Zero Hedge About a year ago, everyone’s favorite easy money advocate Paul Krugman accused the world’s oldest central bank of turning Sweden into Japan by adopting a policy of “sadomonetarism.” The Riksbank, Krugman claimed, unnecessarily transformed itself from

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Fundamental Insights Into the Benevolent Nature of Capitalism Part 2

Tuesday, March 17th, 2015 by posted in Capitalism, Economics.
abundance_teaser

This essay was originally presented as a speech at the Ludwig von Mises Institute on October 19, 2002, under the title “Some Fundamental Insights into the Benevolent Nature of Capitalism.” It appears as the lead essay in my Amazon.com collection

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Fundamental Insights Into the Benevolent Nature of Capitalism Part 1

Monday, March 16th, 2015 by posted in Capitalism, Economics.
cornucopia_1024x768-teaser

This essay was originally presented as a speech at the Ludwig von Mises Institute on October 19, 2002, under the title “Some Fundamental Insights into the Benevolent Nature of Capitalism.” It appears as the lead essay in my Amazon.com collection

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