Tuesday, 28 March 2017

Monthly Archives August 2011

Sound Money and World Peace vs Inflation and Alien Invasion

Posted by Gonzalo Schwarz
August 16, 2011

Paul Krugman chooses the latter. “We could use some inflation… [but] it’s very hard to get inflation in a depressed economy, but if you had a program of government spending plus an expansionary policy by the Fed you could get that… If we discovered that space aliens were planning to attack and we needed a massive […]

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Ignoble Nobel: Krugman explicitly advocating inflation

Posted by Alex Chafuen
August 12, 2011

Today in the New York Times Paul Krugman calls for “an all-out effort by the Federal Reserve to get the economy moving, with the deliberate goal of generating higher inflation to help alleviate debt problems.”   The destruction of the US monetary order is too slow for him.   Thanks to scholars who many decades […]

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Investing in gold, loving the free society

Posted by Alex Chafuen
August 11, 2011

My late economic professor and mentor, Hans F. Sennholz, practiced what he preached.  His example added to the strength of his classes.  Forecasting the great weakening of paper money he invested in gold and silver.   He had mixed feelings.  “As gold investors we may rejoice about the soaring gold price, but as members of […]

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Checkmate?

August 10, 2011

The turmoils affecting the economics and financial markets in the United States and Europe do not seem to go away as fast as anyone would want to. Those who warned that this may be a crisis with a “W” shape may well be right. The recent downgrade in from AAA to AA- in the short […]

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“Should Governments buy gold?” Even New York Times creates discussion blog

Posted by Alex Chafuen
August 10, 2011

When I was studying under Hans Sennholz, a student of Von Mises, our text book for monetary economics was Mises The Theory of Money and Credit.  It was 1978-1979, and the price of gold was also going through the roof (in real terms higher than today’s price).   The negative results of continued politicization of money […]

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Shooting the Messenger

Posted by Gonzalo Schwarz
August 9, 2011

I had a friend, we’ll call him George[i], who had a theory about how to best keep the carbonation in his beverages.  It was very straightforward.  It went like this: After opening, leave the cap off.  Although it sounds ridiculous, this was his actual procedure.  Don’t laugh.  This is the exact type of thinking that […]

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