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How money creation threatens hyperinflation

Sunday, March 29th, 2015 by posted in Economics.

In order to understand the relationship between money creation and the price level, we first need to get some definitions straight. To Austrians the terms inflation and deflation refer to money and not prices. There is no doubt that money

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My letter to the NY Times re: New Pay Day Loan regs will hurt the working poor

Sunday, March 29th, 2015 by posted in Economics, Regulation.

Re: Agency wants to rein in payday loans Dear Sirs: Often payday lenders are the last tool of the working poor to forestall having utilities cut off, having a car repossessed (which can lead to losing one’s job), or even

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The Motte and Bailey Doctrine in Mainstream Economics

Friday, March 27th, 2015 by posted in Economics, Epistemology, Uncategorized.

A “motte and bailey doctrine” is a style of argument (and informal fallacy) that’s based on a motte-and-bailey castle. The bailey is a big courtyard and where people live and work and generally want to be. The motte is a mound

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My letter to the NY Times re: Setting the record straight on changes to the price level

Thursday, March 26th, 2015 by posted in Economics.

Re: Eurozone Business Growth Nears 4-year High, by David Jolly Dear Sirs: Once again one of your reporters repeats the mantra that there is a “…problem of declining consumer prices…in the eurozone…”. Problem for whom? Changes in the price level

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How the Education System Destroys Social Networks

Wednesday, March 25th, 2015 by posted in Capitalism, Education.

Reprinted from the Freeman I was at a restaurant for lunch and had time to visit with the waitress, who turns out to be a college graduate from a good institution. She has a degree in European languages. Here she

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A Waste of Time

Tuesday, March 24th, 2015 by posted in Economics, Politics, Socialism.

From today’s Open Europe news summary: Bundesbank proposes new European fiscal authority to replace European Commission Germany’s Bundesbank proposed in its monthly report yesterday to create “a new European fiscal authority which, in the style of independent national fiscal councils,

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BIS Slams The Fed: The Solution To Bubbles Is Not More Bubbles, It Is Avoiding Bubbles In The First Place

Tuesday, March 24th, 2015 by posted in Uncategorized.

Reprinted from Zero Hedge On one hand there are hard-core Keynesians who will wave the flag of inflation as the only cure to a world drowning in debt, even after the mushroom cloud results of their policies going off around

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My letter to the NY Times re: Time for an editorial board reassessment

Monday, March 23rd, 2015 by posted in Economics.

Re: Japan’s Recovery Is Complicated by a Decline in Household Savings, by Jonathan Soble Dear Sirs: Mr. Soble (and your editorial board, I’m sure) can’t seem to make up his mind whether Japan should spend its way to prosperity or

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Why We Should Use the Word “Taxpayer”

Monday, March 23rd, 2015 by posted in Politics, Regulation, Socialism.

Elizabeth Stoker Bruenig has been on a tear lately. Her near-constant attacking of libertarians has brought her “vertically-integrated digital media company” a good deal of traffic. For this I say: congrats! Mrs. Bruenig, you’re as enterprising as the capitalist robber

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Robert Reich Literally Doesn’t Understand the First Thing About Price of Labor

Sunday, March 22nd, 2015 by posted in Economics, Education.

Young people might think of Robert Reich as an annoying guy on the Internet who amasses an astonishing number of Likes and Re-Tweets, considering the number of fallacies in his social media posts. And yet, he actually has an impressive resume, having

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My letter to the NY Times re: Mr. Kuroda has put the cart before the horse

Friday, March 20th, 2015 by posted in Economics.

Re: Japan’s Central Bank Warns of Temporary Return to Deflation Dear Sirs: BOJ governor Kuroda and his supporters should question the very foundation of their beliefs that inflation is “…crucial to rekindling growth…” and that “a ‘deflationary mindset’ is behind

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The Federal Reserve Bank Must Be Destroyed!

Thursday, March 19th, 2015 by posted in Civil Liberties, Economics, Foreign Policy, Politics.

“Delanda est in Susidium Foederatum Bank” (The Federal Reserve Bank Must be Destroyed) During the years of the Roman Republic, Cato the Elder ended every speech with the phrase “Delanda est Carthago” (Carthage must be destroyed). Rome had fought two

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My letter to the NY Times re: False love affair with inflation

Wednesday, March 18th, 2015 by posted in Economics.

Re: Asia Rushes to Lower Rates, But Maybe Not Fast Enough by Neil Gough Dear Sirs: In the first two short paragraphs of his article Mr. Gough reveals the premise upon which his title depends. Since his premise is faulty, the

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World’s Oldest Central Bank Asks Paul Krugman To Shut Up

Tuesday, March 17th, 2015 by posted in Banking, Capitalism, Economics.

Reported from Zero Hedge About a year ago, everyone’s favorite easy money advocate Paul Krugman accused the world’s oldest central bank of turning Sweden into Japan by adopting a policy of “sadomonetarism.” The Riksbank, Krugman claimed, unnecessarily transformed itself from

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Conservatism Against Rolling Back the State

Monday, March 16th, 2015 by posted in Epistemology, Philosophy, Politics.

American historian Robert Conquest is getting up there in years. The Hoover Institution fellow is just three years shy of the big 1-O-O. Despite having received the Presidential Medal of Freedom (and various other awards from different countries), few people

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Who Will Regulate the Bank Regulators?

Monday, March 16th, 2015 by posted in Banking.

A fascinating report by Finn Poschmann from the C.D. Howe Institute discusses the history of bank regulation in the U.S., Canada, and U.K. It explains the movement away from shareholder liability in banks, towards the current system where taxpayers are ultimately on

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My letter to the NY Times re: Currency debasement destroys capital

Sunday, March 15th, 2015 by posted in Economics, Politics.

Re: Delight or Dread as Euro Falls Dear Sirs, Of all the economic fallacies perpetrated on the public by so-called “macro economists”, recommending currency debasement as the path to economic recovery and permanent prosperity may well be the most destructive.

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Upcoming Toronto Bitcoin Event

Wednesday, March 11th, 2015 by posted in Events.

For our Toronto readers, Tuesday March 17 at the MaRS Discovery District will be the first ever Decentralized Technology (DEC_TECH) event. Learn more here: http://www.meetup.com/DEC_TECH/events/220935201/?a=me1_grp&rv=me1&_af_eid=220935201&_af=event From the event description: DEC_TECH events will bring the Toronto community together to learn and discuss the growing space of

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A good lesson from Greece in the difference between private and public finance

Tuesday, March 10th, 2015 by posted in Banking, Capitalism, Economics, Politics.

From today’s Open Europe news summary (my emphasis): Greece to start technical talks with creditors tomorrow amid criticism that too much time is being wasted Eurozone finance ministers agreed yesterday that officials from the Greek government and the EU/IMF/ECB Troika

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In Further Defense of Political Dynasty

Tuesday, March 10th, 2015 by posted in Philosophy, Politics.

When the chatter heads in Washington are uptight about something, you can usually bet it’s good. The recent brouhaha amongst the political class was sparked by a Washington Post column trollishly titled “In Defense of Political Dynasties.” Written by George

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