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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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Hayek: The Knowledge Problem

Thursday, October 9th, 2014 by posted in Capitalism, Economics.
Perth_skyline_at_night_teaser

Reprinted from the Freeman F.A. Hayek is an epic figure in the history of human freedom. He stood for liberty at a time when most intellectuals in the world embraced ideologies of command and control. His literary legacy continues to

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Venezuela’s Biggest Shortage

Wednesday, October 8th, 2014 by posted in Capitalism, Civil Liberties, Economics, Regulation.

Venezuela’s socialist government has beset the population with all sorts of terrible travesties, from high inflation to shortages of toilet paper. Now the country’s poor citizens have one more shortage to grapple with: breast implants. Apparently the country’s restrictive currency

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Engineers and Planners

Wednesday, October 8th, 2014 by posted in Capitalism, Economics, Regulation, Socialism.
communist_central_teaser

[This article is excerpted from The Counter-Revolution of Science, pp. 94–102.] Reprinted from Mises.org The Engineer The ideal of conscious control of social phenomena has made its greatest influence felt in the economic field. The present popularity of “economic planning”

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Bubbly Real Estate and Greater Fools

Tuesday, October 7th, 2014 by posted in Economics.

The Fed has more than quadrupled its balance sheet from 2008 to now, attempting to create jobs. The result; a 1.7 million increase in the number of unemployed, a 2.5 million increase in the number of those employed part-time for

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Will You Have a Second Child if Permitted?: China’s One-Child Policy 2.0

Tuesday, October 7th, 2014 by posted in Economics, Foreign Policy.
china two

China’s one-child policy has been a controversial topic since its implementation. One major argument is that this policy will lead to a substantial decline in fertility rate over time. According to Bing Chen (2014), who cites from the 2011 China

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One More Step Towards a Market Economy: The Reform of China’s Household Registration System

Tuesday, October 7th, 2014 by posted in Economics, Foreign Policy.
china 1

On July 30, 2014, a piece of news regarding the reform of China’s Household Registration system (the hukou system) began to be circulated. This reform was officially confirmed by the state council of PRC earlier, and soon became a heated

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The Power of the State vs. the Power of Love

Tuesday, October 7th, 2014 by posted in Capitalism, Economics.
marketplace_teaser

Reprinted from The Beacon For thousands of years, philosophers have argued that society must invest great power in the rulers because only great power can hold back the forces of evil—violence, plunder, and disorder. They have often conceded, of course,

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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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Is the US making the same mistakes as Zimbabwe?

Sunday, October 5th, 2014 by posted in Economics, Politics.

I have started reading a new book about the collapse of the Zimbabwean dollar–When Money Destroys Nations, by Philip Haslam and Russell Lamberti. One of the main causes of the hyperinflation was the decision of the Zimbabwean government to give

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QE Reduces Long-Term Rates: Theory and History

Saturday, October 4th, 2014 by posted in Economics.
10 yr

The more I study the Bill Gross episode, the more interesting it becomes. In a previous post I showed that although Paul Krugman had definitely been right to say (when it occurred) that Gross’ bet against Treasuries was going to

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Can the Central Bank Control Interest Rates?

Friday, October 3rd, 2014 by posted in Economics.
Base vs FF

In my last post, I brought up the fact that Paul Krugman seems to be saying two different things: On the one hand, he excoriates the ECB for tightening in 2011 by raising interest rates, and on the other hand,

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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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