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Money Doesn’t Really “Go Into” Other Financial Assets

Thursday, August 7th, 2014 by posted in Banking, Economics.
Printing Press

One of the interesting features of the U.S. economy since 2008 is that despite the tremendous increase in what’s called “the monetary base”—the quantity of dollars that the Federal Reserve directly controls—we haven’t seen a corresponding increase in consumer prices.

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I’ll punish you by starving my own people

Thursday, August 7th, 2014 by posted in Economics.

Re: Russia bans food imports from US and EU Putin has banned food imports from the US, EU, Canada, and Japan.  He is waging war against his own people in the misguided view that it is money that people desire and

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Cooperation, Not Competition!

Wednesday, August 6th, 2014 by posted in Capitalism, Economics.
capitalism1 teaser

Reprinted from FEE.org “Gym Now Stresses Cooperation, Not Competition,” blared a headline in The New York Times a decade ago. The story was about an elementary school where “confrontational” games, team sports, and elimination rounds were changed or scrapped so that differences between

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How Government Uses “Efficiency” as an Excuse to Steal

Tuesday, August 5th, 2014 by posted in Economics, Politics, Regulation.
efficient teaser

Reprinted from Mises.org Scarcity makes efficiency — getting the most value from given resources —important. The more efficient individuals are, the more they benefit from their actions. That’s why economists are always talking about efficiency. Unfortunately, some things said to

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On Krugman’s Arrogance

Monday, August 4th, 2014 by posted in Economics, Epistemology.
krugmanpic

Economist Paul Krugman’s New York Times column dropped off my reading list months ago. His conscious effort to become a kind of parody of himself, a holier-than-thou hero fighting off the scourge of ignorant free marketeers, was too much of

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Rebels Will Inherit the Earth

Monday, August 4th, 2014 by posted in Capitalism, Economics, Regulation.
rebel teaser

Reprinted from Liberty.me To get to the coolest bar in Chicago — recently voted the best new bar in the U.S. — you turn down a small alley and walk half-way down until you get to a small blue light.

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Trade does not need to be managed

Monday, August 4th, 2014 by posted in Economics, Trade.

From today’s Open Europe news summary: Writing in the Telegraph, London Mayor Boris Johnson argues that “It is clear that 25 years ago we made a miscalculation about one of the consequences of EU enlargement. We were right to want to

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London’s press jumps on QE bandwagon

Friday, August 1st, 2014 by posted in Banking, Capitalism, Economics.

First the Financial Times and now the Economist have jumped on the quantitative easing (QE) bandwagon and called for the European Central Bank to embark on a policy of buying assets in the open market at above market prices–with printed money, of course.  What

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Argentina: Another Keynesian Success Story That Wasn’t Their Fault

Thursday, July 31st, 2014 by posted in Economics.
mad me worry

On July 30 S&P declared Argentina’s government technically in default on $13 billion of its sovereign bonds that were restructured after the government’s previous default back in 2002. Inasmuch as several of the world’s major Keynesian bloggers never tire of pointing

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I’ll punish you by starving myself!

Thursday, July 31st, 2014 by posted in Economics, Politics.

A quote from one of the news summaries found on Open Europe today: “Russia also announced a ban on some fruit and vegetables imports from Poland, and is considering expanding the ban to the entire EU.” I doubt that Putin

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Life Insurance: Seceding from the System?

Thursday, July 31st, 2014 by posted in Banking, Economics.
life-insurance teaser

Reprinted from FEE.org Most Americans implicitly assume that the financial system has always worked the way it does now. Although they may have a vague knowledge that the U.S. dollar used to be tied to gold, they can’t really imagine

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Cultonomics and the Austrian School

Thursday, July 31st, 2014 by posted in Economics, Epistemology.
krugman pray

Mainstream economists have long derided the Austrian School as a “cult”. Professor Walter Block recounts stories from Nobelists Gary Becker and James Buchanan off-handedly referring to the cultish Austrians. When pressed by Professor Block, Becker said, “By a cult I

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Nothing has changed in over two hundred years

Wednesday, July 30th, 2014 by posted in Economics, Politics.

From Edmund Burke’s Reflections on the Revolution in France. (Just substitute “dollar” for “assignats“.  Nothing has changed.) “Assignats.  Is a fleet to be fitted out?  Assignats.  If sixteen millions sterling of these assignats forced on the people leave the wants of the state

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Raw Communism

Wednesday, July 30th, 2014 by posted in Economics, History, Philosophy.
communist-revolution teaser

[This article is excerpted from volume 2, chapter 10 of An Austrian Perspective on the History of Economic Thought (1995). An MP3 audio file of this chapter, narrated by Jeff Riggenbach, isavailable for download.] Reprinted from Mises.org Another important reason for Marx’s

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Six Current Economic Myths and Realities

Tuesday, July 29th, 2014 by posted in Economics, Education.

The following are six of the most prevalent economic myths that appear time and again in the mainstream media.  I will give a brief description of each and a brief description of the economic reality, as seen from an Austrian

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I’m Shocked! Shocked!

Tuesday, July 29th, 2014 by posted in Economics, Politics.

From today’s Open Europe news summary: In its quarterly report, the Greek Parliament’s State Budget Office has warned that Greece will require a third bailout package to avoid a default, and that despite capital injections, the problems of the country’s banks

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The Right Way to View Entrepreneurship

Tuesday, July 29th, 2014 by and posted in Capitalism, Economics.
lightbulb- teaser

Reprinted from Mises.org Mises Institute Senior Fellow Peter Klein and Associated Scholar Nicolai Foss were interviewed by Ángel Martín Oro for Sintetia.com. Klein and Foss discuss their 2012 book Organizing Entrepreneurial Judgment: A New Approach to the Firm, published by Cambridge University Press. Sintetia: The

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Mathematical Economics vs. “Literary” Economics?

Monday, July 28th, 2014 by posted in Economics.
Booth_11_portrait_headshot[1]

Famed Chicago economist John Cochrane has recently returned from a seminar at the National Bureau of Economic Research (NBER, the organization tasked with determining whether the economy is in a recession or not, and where Ludwig von Mises was employed

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The Mighty Return of the Twinkie: A One-Year Retrospective

Monday, July 28th, 2014 by posted in Capitalism, Economics, Regulation.
twinkies teaser

Reprinted from Liberty.me It was November 2012 when the bankrupt Hostess company pulled the Twinkie from production and sent many generations of sponge-cake lovers, including me, into panic. Then only a 8 months later, July 15, 2013, all became right

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Easy Money Blood Thinners

Monday, July 28th, 2014 by posted in Banking, Capitalism, Economics.
Lehman Brothers fascia goes on sale at Christie's

Reprinted from the Pembroke Observer Since the collapse of Lehman Brothers investment bank in 2008, central banks around the world have created trillions of additional dollars, yen, euros and renminbi. In the immediate aftermath of Lehman’s bankruptcy other banks, unsure

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