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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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John Tamny Needs to Stop Lecturing People on Mises’ Monetary Views

Friday, October 17th, 2014 by posted in Economics.
gold bars

John Tamny has an unfortunate habit of criticizing Austrian economists by citing the legacy of Ludwig von Mises, when it is clear that Tamny doesn’t know what he’s talking about. Let me be clear: I am all for people criticizing

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Occupational Licensure Strikes Again

Friday, October 17th, 2014 by posted in Capitalism, Economics.
braiding

It’s that time of year again: the time where I go on and on about a subject nobody but me cares about. That’s right, it’s occupational licensure! This is a subject that does not get nearly enough attention from the

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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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No Virginia, Reagan Had a Better Economic Record Than Obama

Thursday, October 16th, 2014 by posted in Economics.
reagan

As part of their campaign to deny that large hikes in the minimum wage or federal income tax rates will have any appreciable downsides, a popular move among progressive pundits lately has been to argue that the economic recovery under Obama

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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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Krugman Needs to Read Christina Romer on Taxes

Thursday, October 16th, 2014 by posted in Economics.
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In a recent blog post Paul Krugman made the following offhand remark regarding taxes and economic growth:  There are growing hints that if Republicans take the Senate, they will voodooize the CBO, making “dynamic scoring” — that is, the assumption

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Market Monetarists Undercut Each Other

Wednesday, October 15th, 2014 by posted in Economics.
stooges

For the die-hard fan of “market monetarism,” the present post will seem cheeky at best. Nonetheless, I thought it worth bringing up something ironic that happened in the blogosphere’s full-court press of advancing the new approach to monetary policy. Specifically,

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The Dangers of Econ 101 in the Minimum Wage Debate

Wednesday, October 15th, 2014 by posted in Economics.
Fast-Food Strikes in 50 U.S. Cities Seeking $15 Per Hour

Minimum wage opponents often illustrate its effects with the standard, econ 101 treatment of price controls: They draw a supply-and-demand graph for low-skilled labour with a price floor set above the market-clearing wage creating a surplus of low-skilled labour. I

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The Nature and Origin of Money

Wednesday, October 15th, 2014 by posted in Capitalism, Economics.
differing-currnecies_teaser

An excerpt from Principles of Economics [online text], Chapter VIII, 1871. Reprinted from Mises.org IN THE EARLY STAGES of trade, when economizing individuals are only slowly awakening to knowledge of the economic gains that can be derived from exploitation of existing

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Cable TV Sinks, Waiting For Crisis

Tuesday, October 14th, 2014 by posted in Economics.
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We’ve got Ebola, ISIS, and mid-term elections and cable news ratings are still in the toilet.  “This has been a tough year all around,” Phil Griffin, the president of MSNBC says. “All three cable news channels are drawing a smaller

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Montreal’s Economic Bilingualism

Tuesday, October 14th, 2014 by posted in Economics.
bilingual-sign

As a resident of Montreal and an Anglo-Quebecer by birth, I have gotten to know the city fairly well in my three years here as a student. Montreal is generally known as the “cultural capital” of Canada, and with the

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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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Befuddled Keynesians attack German responsibility

Friday, October 10th, 2014 by posted in Economics.

Re: Germany’s Insistence on Austerity Meets With Revolt in the Eurozone Re: I.M.F. Asks Rich Countries for Support These two article in the New York Times from Wednesday of this week illustrate the confusion and increasing stridency of Keynesian school

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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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Autonomy: The Self-Driving Car

Friday, October 10th, 2014 by posted in Capitalism, Economics.
audi_self teaser

Audi announced recently that it has become the first automaker to receive approval to test its self-driving cars on California’s public roads.  Autonomy (both technical and political) is about to shift into high gear. We could be forgiven for thinking

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Be Careful When you Wish for a Weak Dollar

Friday, October 10th, 2014 by posted in Economics.

A little over a year ago, Canadians were alarmed by the surging loonie. As the argument went, foreigners (and Americans in particular) couldn’t afford to buy Canadian-made goods. Since the country couldn’t compete, better get the Bank of Canada on

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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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