Negative Interest Rates– Only The Start?

Friday, June 20th, 2014 by posted in Banking, Capitalism, Economics.
eurobanknote teaser

Reprinted from Circle Bastiat As Ryan McMaken noted on June 5,  the European Central Bank has instituted negative interest rates for member banks. This could soon spread to the US and also to consumer accounts. If so, you would find money


Europe’s Future: Inflation and Wealth Taxes

Tuesday, January 14th, 2014 by posted in Banking, Economics.

Tax burdens are so high that it might not be possible to pay off the high levels of indebtedness in most of the Western world. At least, that is the conclusion of a new IMF paper from Carmen Reinhart and


An analytic framework for 2013

Tuesday, January 15th, 2013 by posted in Economics.
Front Jan 15 2013 ii

Republished from “A View from the Trenches“ Click here to read this article in pdf format: January 15 2013 In the same fashion that I proposed an analytic framework for 2012, I want to lay out today what I think will be

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What causes hyperinflations and why we have not seen one yet: A forensic examination of dead currencies

Tuesday, December 18th, 2012 by posted in Economics.
Dec 16 2012 3

Please, click here to read this article in pdf format: December 18 2012 As anticipated in my previous letter, today I want to discuss the topic of high or hyperinflation: What triggers it? Is there a common feature in hyperinflations that

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A Golden Deutsche Mark Is the Catalyst for Ending the Tyranny of Fiat Money Inflation

Thursday, November 22nd, 2012 by and posted in Banking, Capitalism.
gold teaser

In his recent Mises Daily Article “Fool’s Gold Standards” John P. Cochran warns his readers against accepting any monetary reform less than that of money created by the free market.  Therefore, he felt it necessary to criticize our previous Mises


Roger Bootle’s Prize Winning Advice to the Greeks: Sit Still While We Rob You!

Monday, October 8th, 2012 by posted in Banking, Capitalism, Economics, Regulation.
Roger Bootle teaser

This summer Roger Bootle won Lord Wolfson’s £250,000 prize for the best advice for a country leaving the European Monetary Union (one may assume that this advice is aimed at Greece).  A more statist, anti-liberal policy than his could hardly

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Leverage, floating rate notes and high frequency trading

Monday, August 6th, 2012 by posted in Economics.

(republished from “A View from the Trenches” : ) Click here to read this article in pdf format:  August 6 2012 Today is a holiday in Canada and our letter is published later than usual. We will make a

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More of the same…

Monday, July 9th, 2012 by posted in Economics, Uncategorized.
July 9 2012

Click here to read this article in pdf format: July 9 2012 Markets had a quiet week, with a holiday in Canada and another in the United States. We will therefore be brief today. In our last letter, we presented how


Is it possible to smoothly exit the Euro zone?

Monday, June 11th, 2012 by posted in Economics.

Click here to read this article in pdf format: June 11 2012 As we write, the news is out that Spanish banks will get bailed out in the order of EUR100BN (also reported EUR125BN). We have repeatedly said that bailing out

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Growth Pact? What Growth Pact?

Monday, April 30th, 2012 by posted in Economics.

If we have to summarize what drove the action last week, we will say it was the speculation over an upcoming (perhaps in June) Growth Pact in the Euro-zone. That was all. That did the trick. There is really nothing,

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If new Euros come only from collateral, would the Eurozone not be better off under the gold standard?

Sunday, March 25th, 2012 by posted in Banking, Economics.

Please, click here to read this article in pdf format: March 25 2012 During the past week, we think, we witnessed some interesting developments. In our previous letter, we had discussed what was the KreditAnstalt event of 1931. We saw a


The Future of the Euro

Monday, March 5th, 2012 by posted in Banking, Economics, Socialism.

[Originally published on, Thursday, February 23rd, 2012] The problems of the eurozone are ultimately malinvestments. In Greece these days the struggle continues about who will ultimately foot the bill for these investments. During the early 2000s an expansionary monetary

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Greece’s Emerging Barter Economy

Friday, December 9th, 2011 by posted in Capitalism, Economics, Law, Lifestyle, Regulation, Socialism, Trade.

In the realm of financial calamities, never doubt the extent of man’s adaptability to changing circumstances. In a recent Forbes column, the great free market advocate Bill Frezza makes mention of a new trend popping up in the economic sideshow