The Hubris of the Monetary Social Contract

Monday, September 15th, 2014 by posted in Banking, Capitalism, Economics.
money-addiction teaser

Reprinted from Casey Research Money was once in the state of nature. Goods were once bartered until especially saleable goods emerged to be used in indirect exchange. A variety of saleable items became money until gold and silver became the

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Why Isn’t Monetary Pumping Helping the Economy?

Monday, September 8th, 2014 by posted in Banking, Capitalism, Economics.
dollar-printing teaser

Reprinted from Despite all the massive monetary pumping over the past six years and the lowering of interest rates to almost zero most commentators have expressed disappointment with the pace of economic growth. For instance, the yearly rate of

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Does the World Need a World Bank?

Tuesday, September 2nd, 2014 by posted in Banking, Capitalism, Economics.

[Ludwig von Mises on Money and Inflation (2010)] As a medium of exchange, the situation of money is different from that of other commodities. If there is an increase in the quantity of other commodities, this always means an improvement of

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The Perfect Banking System

Wednesday, August 27th, 2014 by posted in Banking, Capitalism, Economics.
casino teaser

Reprinted from the Carl Menger Center for the Study of Money and Banking he perfect banking system, like the perfect monetary system, is one which serves the needs of consumers and savers, and not the needs of the government. It

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World Reserve Currencies: What Happened During Transition?

Tuesday, August 26th, 2014 by posted in Banking, Capitalism, Economics.
dollar-bills_0 teaser

Reprinted from The decline of the US dollar hegemony is ever so clear today and this article aims to provide the reader with what exactly happened during past periods of reserve currency transitions. Historically, when a reserve currency transitioned

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Gold versus Fractional Reserves

Thursday, August 21st, 2014 by posted in Banking, Capitalism, Economics.

[This article originally appeared in The Freeman, May 1979.] The present worldwide inflation has done, and will continue to do, immense harm. But it may eventually lead to one great achievement. It may make it possible to restore (or perhaps it

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The Amazing Crash in Clothing Prices

Thursday, August 14th, 2014 by posted in Capitalism, Economics.
clothing teaser

Reprinted I was out shopping for a new winter coat, hopping from store to store looking for a good deal. To my astonishment, it was almost impossible not to find a good deal. Coats of a quality that once

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How the Surge of Hot Money Pushes San Francisco to the Brink

Thursday, August 7th, 2014 by posted in Banking, Capitalism.
DowntownSF teaser

Reprinted from Wolf Street The median home price in my beloved and crazy San Francisco – that’s for a no-view two-bedroom apartment in an older building in a so-so area – after rising 13.3% from a year ago, hit an ultra-cool,

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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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Central Planning by Central Bankers

Monday, July 7th, 2014 by posted in Banking, Capitalism, Economics.
federalresrve teaser

Reprinted from One of the problems that anyone who is critical of the Federal Reserve System faces is the fact that he is regarded as someone without any expertise in the area of money and banking. In a 2009

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The Dow’s All-Time High

Friday, July 4th, 2014 by posted in Economics.

The Dow Jones Industrials just closed above 17,000 for the first time ever. While they are celebrating the 4th of July, Americans can rejoice in the good fortune the stock market is giving them. But wait, what’s actually driving the

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Inequality Did Start Around 1970

Wednesday, June 18th, 2014 by posted in Banking, Economics.

In this post by Bob Murphy, some commenters disagree with the use of the early 1970s as the point when income and wealth inequality started to become a problem. Thomas Piketty has recently gained some fame for pointing this out.


Meats and Poultry at Record Prices

Tuesday, June 17th, 2014 by posted in Capitalism, Economics.

The Bureau of Labor Statistics’ index of meats, poultry, fish and eggs just hit an all time high. Nor are these higher prices confined to just food items. Consumer prices across the board are registering their sharpest price increases in

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The Fed Won’t Let the Economy Heal

Tuesday, June 17th, 2014 by posted in Banking, Capitalism, Economics.
janetyellen teaser

Reprinted from Most commentators are of the view that the massive monetary pumping of the Fed during 2008 prevented a major economic disaster. The yearly rate of growth of the Fed’s balance sheet jumped from 3.9 percent in January

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How Inflation Picks Your Pocket

Friday, June 13th, 2014 by posted in Banking, Capitalism, Economics.
money-printing-1024x768 teaser

Reprinted from In the denouement of the film There Will Be Blood, the antihero Daniel Plainview dramatically reveals to his nemesis that he has secretly siphoned away all of the latter’s underground oil. “Drainage!” he bellows, as only Daniel Day-Lewis can,

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The Impossibility of Negative Interest Rates

Tuesday, June 10th, 2014 by posted in Banking, Capitalism, Economics.

Central bankers must be getting desperate. After the futile effort to boost the global economy via synchronized money printing en masse, they are doubling down on the same failed policy. Now it’s no longer enough to produce endless supplies of

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Why is There So Much Confusion in Macroeconomics?

Monday, June 9th, 2014 by posted in Capitalism, Economics, Philosophy, Regulation.
money-printing1 teaser

Should we print, not print? Stimulate, not stimulate? Is austerity the right or wrong policy? Is government spending or printing effective? If we ask two economists these questions, we will likely get three opinions for each question. Economists seem confused,


Down with Legal Tender

Friday, June 6th, 2014 by posted in Banking, Capitalism, Economics, Regulation.
canadiancurrency teaser

[This article is excerpted from chapters 4, 5, and 6 of Denationalisation of Money: the Argument Refined.] Reprinted from When one studies the history of money, one cannot help wondering why people should have put up for so long with

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The Essence of Keynesian Thinking

Friday, May 30th, 2014 by posted in Capitalism, Economics, Philosophy.
keynes legacy teaser

Reprinted from [This article originally appeared as "Keynesian Thinking" in Newsweek, August 11, 1954.] Arthur F. Burns, now chairman of the Council of Economic Advisers, is one of the country’s outstanding statisticians. Yet there is in his implied economic philosophy

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The Demise of the Dollar

Friday, May 23rd, 2014 by posted in Banking, Capitalism, Economics, History.
dollar printing teaser

Reprinted from the Pembroke Daily Observer Over twenty years ago, while walking the streets of Saigon, Vietnam, I came across an elderly drinks seller who surprised me by pulling a sizeable wad of US dollars out from underneath her blouse in

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