Let There Be Money

Thursday, February 5th, 2015 by posted in Banking, Capitalism, Economics.
bitcoin pile teaser

Reprinted from The Freeman For more than a century, skeptics of government power have rightly focused on the damage caused by interventions in money. As the market’s classic commodity moneys have been displaced by unbacked State-issued paper, libertarians — particularly

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All Hail the Tumbling Price of Gas

Monday, January 26th, 2015 by posted in Capitalism, Economics, Environment.

Reprinted from the Freeman American consumers begin the new year with a beautiful gift: low gas prices. These days, you pay twice or three times as much for fancy bottled water from the convenience store as you pay for gasoline,

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China’s Unsustainable Growth

Friday, January 23rd, 2015 by posted in Banking, Capitalism, Economics.

In November 2014, China’s central bank declared it will lower the interest by 0.4%. The modification is not large enough to imply a change of policy direction, however; it is still an effort to sour on the financial market and

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Will the ECB Soon Fire Up the Printing Presses?

Friday, January 16th, 2015 by posted in Banking, Economics, Regulation.

There is growing anticipation that the European Central Bank will pull the QE (quantitative easing) trigger at its upcoming meeting on January 22nd. Never mind that such an action explicitly violates article 104 of the Maastricht treaty (article 123 of

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How Reducing GDP Increases Economic Growth

Monday, January 12th, 2015 by posted in Capitalism, Economics, Politics, Regulation.

Reprinted from Recently, the Financial Times published an article containing charts displaying the correlation between government spending and real GDP growth.1 Based on these correlations, the author of the article, Matthew Klein, comments: “It’s no secret that spending cuts

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The Myth of Fed Independence

Friday, January 9th, 2015 by posted in Banking, Capitalism, Economics.

Excerpted from The Case Against The Fed. Reprinted from By far the most secret and least accountable operation of the federal government is not, as one might expect, the CIA, DIA, or some other super-secret intelligence agency. The CIA

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Currency Wars

Monday, January 5th, 2015 by posted in Banking, Capitalism, Economics.

The current Japanese monetary printing orgy and European Central Bank threats of massive QE are both aimed at primarily boosting exports to kick start their moribund economies. The yen has dropped nearly 12% against the dollar since the Japanese announcement


Oil’s Swoon Undoes the Fed

Friday, January 2nd, 2015 by posted in Banking, Capitalism, Economics.

Reprinted from Casey Research While we’re taught in school and reminded by many that central banks are in the inflation-fighting business, history proves the opposite. Economist Murray Rothbard compared central bankers who talked about suppressing inflation to arsonists who would

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Epic Fail: 100 Years of the Fed

Thursday, January 1st, 2015 by posted in Banking, Capitalism, Economics.
Federal Reserve teaser

Reprinted from The Freeman The most surprising monetary innovation of our time is bitcoin, a privately produced digital currency and payment system. It is a global system that provides a dramatic alternative to central banking and monetary nationalism as we

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Krugman: I’m Only Keynesian to Botch 1980s Inflation Call

Wednesday, December 31st, 2014 by posted in Economics.
Nobel Prize winning economist Krugman talks to the audience during a conference about the current global crisis, in Sao Paulo

Krugman famously admitted he doesn’t read conservative economics bloggers. Maybe he should, though, so he can stop making a fool of himself when he tries to rewrite history. Today’s example is Krugman’s recent post arguing that right-wing economists have created a myth

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The Role of the Leverage Effect in the Austrian Business Cycle heory

Friday, December 26th, 2014 by posted in Banking, Capitalism, Economics.

The process through which lax credit conditions cause malinvestments (the nub of the Austrian Business Cycle Theory) is commonly passed over without much ado. In sections 22.2.1 to 22.2.3 of my recent book, Finance Behind the Veil of Money, I

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Hold the Frankincense and Myrrh

Monday, December 22nd, 2014 by posted in Banking, Capitalism, Economics.

As we approach the end of the calendar year, it is useful to look back at recent events to give us a sense of what the year ahead may hold. Looking back at the past couple of months, two events

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An Unorthodox Solution to the World’s Economic Problems

Wednesday, December 17th, 2014 by posted in Banking, Capitalism, Economics.
Federal_Reserve teaser

We currently face a monumental dilemma. How do we extract ourselves from all this excessive debt without crashing the world economy? There is a solution which is totally counterintuitive: print even more money. In other words, to get out of

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Krugman’s Uncertainty

Thursday, December 11th, 2014 by posted in Banking, Capitalism.

Attending the “Managing the Economy: Main Street, Wall Street and the Federal Reserve” on 9th December 2014, I was able to hear Dr Paul Krugman speak on issues of monetary policy and fiscal policy. Fiscal policy was deemed irrelevant early

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Money and the Law

Wednesday, December 3rd, 2014 by posted in Banking, Capitalism, Economics, History.

(Original Italian publication: Movimento Libertario, L’Indipendenza) The modern (or totalitarian) State is founded on two frauds: the fraud of law and the fraud of money. The wielders of political power have replaced the law and money with things they called


The Politics of Monetary Policy

Monday, December 1st, 2014 by posted in Banking, Capitalism, Economics.

This article is excerpted from chapter 3 of Politically Impossible? Suppose an economist is convinced that the most appropriate international monetary system in a civilized age is one in which the measuring rod of money in every country has a

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On the Swiss Gold Referendum

Sunday, November 30th, 2014 by posted in Banking, Capitalism, Economics.

The Swiss gold initiative has come and gone. It can be summarized as much ado about nothing. Even if it had passed, the initiative would have had no real impact on the Swiss National Bank’s ability to print money or

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The Fraud in Fractional Reserve Banking

Wednesday, November 26th, 2014 by posted in Banking, Economics.

Suppose you bring a fur coat to a dry cleaner, and discover that the owner allowed his wife to wear it before cleaning it (which is also the subject of an episode from Seinfeld).  Or, suppose you gave your car keys

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Time to Raise Rates?

Tuesday, November 25th, 2014 by posted in Banking, Capitalism, Economics.

Canada emerged relative unscathed from the financial crisis of 2008. Indeed, over the last six years growth has been relatively robust and to venture out in Toronto, Calgary or Vancouver right now one would think they were in the midst


Why Banking, Corporate America And The Government Need Each Other

Monday, November 24th, 2014 by posted in Capitalism, Economics, Foreign Policy.

Reprinted from Content: This paper summarizes an outstanding essay written by Murray N. Rothbard in 1984, which appeared the first time in World Market Perspective and later under the same title as a monograph produced by the Center for

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