Thursday, 21 September 2017

Monthly Archives December 2011

What Really Caused the Eurozone Crisis?

Posted by admin
December 29, 2011
in Blog

World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011. And that was in the year that featured the Arab Spring, the Japanese tsunami and the death of Osama Bin Laden. What’s more, 2012 looks set to be not much different. But as eurozone governments hammer out new rules […]

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Smashing Myths and Restoring Sound Money

Posted by Gonzalo Schwarz
December 28, 2011
in Blog

Presented by Thomas E. Woods, Jr. at “Depression, Monetary Destruction, and the Path to Sound Money”: the Mises Circle in Greenville, South Carolina, 3 October 2009. Sponsored by Atlantic Bullion and Coin, and Professional Planning of Easley, LLC.   image from mises.org

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Rajoy’s Plan for Spain: Conviction or Necessity?

December 28, 2011
in Blog

The election of Spain’s new President of Government, Mariano Rajoy, has produced quite a few expectations. His plan seems to go against the tide on some focal points regarding the problems of the European Crisis. Rajoy’s government has been described as the only government in Europe that will not increase taxes to cut the budget […]

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China’s Hard Landing and Hayek

December 28, 2011
in Blog

A few days ago, Paul Krugman defended the position that “Friedrich Hayek is not an important figure in the history of macroeconomics.” This triggered quite a few reactions (here, here, here, here and here). Anyone familiar with the general aspects on the history of economic thought will find Krugman’s defense odd. To deny the relevance […]

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Ron Paul Predicts Dollar Holders Will Be Forced To Bailout the Euro Holders

Posted by Gonzalo Schwarz
December 28, 2011
in Blog

The economic establishment in this country has come to the conclusion that it is not a matter of “if” the United States must intervene in the bailout of the euro, but simply a question of “when” and “how”. Newspaper articles and editorials are full of assertions that the breakup of the euro would result in […]

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Oh, Nigel! “The Euro is a Failure”

Posted by Gonzalo Schwarz
December 28, 2011
in Blog

Bombastic European Speaker Nigel Farage MEP, UKIP, Co-President of the EFD Group in the European Parliament (Europe of Freedom and Democracy) shows American representatives how it should be done.  He attacks the failed currency union, unelected bureaucrats, and buying debt with debt.  People would actually tune in to C-Span if we had this kind of entertainment […]

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Free Banking versus Large-scale Credit Expansion

Posted by Gonzalo Schwarz
December 28, 2011
in Blog

Observations on the Discussions Concerning Free Banking The Banking School taught that an overissuance of banknotes is impossible if the bank limits its business to the granting of short-term loans. When the loan is paid back at maturity, the banknotes return to the bank and thus disappear from the market. However, this happens only if […]

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Congress Changes Gold Into Paper, Dogs into Cats

Posted by Gonzalo Schwarz
December 28, 2011
in Blog

Ron Paul’s Domestic Monetary Policy and Technology Subcommittee Hearing entitled “Road Map to Sound Money: A Legislative Hearing on H.R. 1098 and Restoring the Dollar” 09/13/2011 (ed. We would like to note an additional argument made by the first witness, Dr. Parks, who points out that the Constitution’s 7th Amendment mandates a jury trial for […]

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Rules versus Solidarity

December 22, 2011
in Blog

A recent news item in The  Washington Times describes the political situation among European countries. In the article two opposite suggestions of how to deal with the crisis can be clearly seen among European policy makers. Take, for instance, the following paragraph: When it was launched in 1999, the euro came with a set of […]

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What Is Interest?

Posted by Gonzalo Schwarz
December 22, 2011
in Blog

Consumers and entrepreneurs often speak of “the cost of money” when referring to interest rates. Modern lenders also refer to the interest they charge as “loan pricing.” Viewed this way, interest is viewed as if it were any other good. The cheaper a good the more affordable it is. And so the lower the interest […]

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What About Money Causes Economic Crises?

Posted by Gonzalo Schwarz
December 20, 2011
in Blog

Rep. Ron Paul sponsored this Congressional lecture on “What About Money Causes Economic Crises?”, the concluding lecture in a three part series on the basic principles of money for Congressional staff. As a continuing educational tool this lecture was filmed and is provided to the public. The lecture was delivered by Peter Schiff, CEO of […]

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What the Price of Gold Means

Posted by Tyler Watts
December 19, 2011
in Blog

It’s amazing how so many people don’t get gold. It’s only been 40 years since the dollar was completely severed from it’s once proud golden heritage, yet most finance and econ people are wont to consider gold just another commodity—and a not very “useful” one at that. Thus they speak of “investing” in gold as […]

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Is Deleveraging “Bad for the Economy”?

Posted by Tyler Watts
December 19, 2011
in Blog

A while back there was a story in the Wall Street Journal (“America’s Debt Cutting Hampers Growth,” Oct. 22) about deleveraging in the U.S. economy. American households, burned by the recession, have a new-found frugality and are reducing their overall debt loads for the first time in decades. Looks like a lot of people learned […]

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…But How Much Has Your Paycheck Inflated?

Posted by Gonzalo Schwarz
December 16, 2011
in Blog

Bob Murphy over at Free Advice lays out the good news: “From yesterday’s PPI and today’s CPI releases, we have the following “official” numbers for year-over-year price increases in various categories: All consumer items except food and energy: +2.2% All consumer items: +3.4% Finished goods: +5.7% Intermediate goods: +7.7% Crude goods: +15.1%” Read More… These numbers may not appear […]

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ECB Vows to Prevent Organizations Initialed “ECB.” Fails Immediately.

Posted by Gonzalo Schwarz
December 16, 2011
in Blog

…Then, upstaged by some cartoon ducks. Cartoon European Central Bank representatives do battle with the inflation monster, in a cartoon produced by the ECB.  Now, let us get this straight: The ECB creates a monster, then purports to fight it all the while it lives in their offices, and then explains this in terms meant […]

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Choose Austerity, Before It Chooses You

Posted by Tyler Watts
December 15, 2011
in Blog

Strange and amazing things happen when sovereign debt levels get out of hand. In Europe, the strikes, massive street protests, and riots build energy by the day. The US is not quite at that stage of affairs yet, but large deficits and debt still loom large, so large, in fact, that some pundits have the […]

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Explaining Central Bank’s Gold Purchases

Posted by Gonzalo Schwarz
December 13, 2011
in Blog

The last two years marked a significant shift in central banks’ attitudes toward gold. Since 1988, central banks have been net sellers of the precious metal. Lacking convertibility of their paper currencies into the commodity, this occurrence makes perfect sense. Why hold a physical asset with costly storage fees when there is no risk that […]

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Three Comments on the Gold Standard

December 12, 2011
in Blog

The financial crisis in 2008, the uncertainty about the future of the Euro and the doubts on the efficiency of monetary policy has brought some renewed interest in the gold standard as an alternative monetary system; or, at least, as a benchmark to evaluate if central banks did actually performed better or worse. This interest, […]

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Monty Python Explain Bankers

Posted by Gonzalo Schwarz
December 12, 2011
in Blog

Banker: “Can you just explain exactly what you want?” Customer: “Well I want you to give me a pound and I’ll go away and give it to the orphans!” “Yes?” “Well that’s it.” “No, no, no. I don’t follow this at all.  I mean I don’t want to seem stupid, but it seems to me […]

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The other Mises and his Monetary Plan for Reconstruction

Posted by Alex Chafuen
December 9, 2011
in Blog

Unlike some of his followers, Ludwig von Mises invested considerable part of his life studying policy issues with a thorough knowledge of the economic conditions and statistics of his native Austria (he even had an estimate of the number of leading entrepreneurs in the country).  A good example would be part II, D) of his […]

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Gold bugs and Paper bugs

December 9, 2011
in Blog

At Free Banking blog, Kurt Schuller points to Ralph Benko’s reply to Roubini’s statements that “this idea of a gold standard is pushed every other day by these gold bugs [and] is not even a theory it’s a theology,” and that the return to the Gold Standard after WWI was a major cause of the […]

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Dr. Tom Rustici of GMU talks with Alasdair Macleod

Posted by Gonzalo Schwarz
December 6, 2011
in Blog

Thomas Rustici, Professor at George Mason University, and Alasdair Macleod, of the GoldMoney Foundation, talk about the European sovereign debt crisis and how it foreshadows similar problems in the USA. A central bank is a monopolistic, central planning agency, with all the implications that this has for the quality of its product. They talk about […]

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The Gutenberg Solution

Posted by Tyler Watts
December 5, 2011
in Blog

The European Monetary Union is evolving like a slow-motion train-wreck these days. Just a few weeks ago, the pundits and bloggers began to ponder the possibility of the Euro failing, and now many are claiming that this is all but inevitable (the Economist provides a sobering assessment; an even more sobering assessment in the Financial […]

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What Happens If We End the Fed?

Posted by Gonzalo Schwarz
December 5, 2011
in Blog

Libertarians, some Occupy supporters are among those calling for an end to the Federal Reserve The “End the Fed” movement appears to have a lot going for it these days. Its adherents now include both conservatives and supporters of the Occupy movement. Perhaps its most prominent proponent, Rep. Ron Paul, has garnered respectable poll numbers […]

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A Daily Dose of the Fed’s Insanity

Posted by Gonzalo Schwarz
December 5, 2011
in Blog

Jon Stewart of the Daily Show sits down with Professor Butterscotch to discuss the loan of $7,700,000,000,000 to the banks at 0.01% interest, which they duly lent back to the government for 3%, or 300 times the amount they borrowed at.  I would say that this is an example of “YOUR TAX DOLLARS AT WORK,” […]

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The First International Financial Crisis: Free Banking Failure or Regulatory Failure?

December 2, 2011
in Blog

The Baring Crisis of 1890 is pointed out as the first modern international emerging financial crisis. The collapse of the banking system in Argentina came very close to triggering a financial crisis in London, the major international financial center. Banks in the United Kingdom were highly exposed to Argentinean debt, especially the Baring Brothers & […]

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The Irrelevant Dramatics of the Super Committee

Posted by Tyler Watts
December 2, 2011
in Blog

“Lord, make me chaste, but not yet.”-St. Augustine I know a guy who’s 130 lbs. overweight, slowly dying from arthrosclerosis and diabetes. He’s been living a slouchy lifestyle for the past 10 years: fast food every night, hasn’t seen the inside of a gym since high school, smokes a pack a day. His doctors have […]

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Nonsense about NGDP Targeting

Posted by Gonzalo Schwarz
December 2, 2011
in Blog

by George Selgin December 1st, 2011 I meant to do so weeks ago, but I only just got around to reading the little flurry of posts concerning NGDP targeting that was set off by John Taylor’s critical remarks on the topic. And now, despite the delay, I can’t resist putting-in my own two cents, because it seems to […]

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Fixing the Dollar Now!

Posted by admin
December 1, 2011
in Blog

  From Jefferson’s early warnings to Roosevelt’s Bretton Woods and Nixon’s Camp David ‘Shock,’ Shelton’s Fixing the Dollar Now is rooted in the “need-to-know” historical foundations of today’s dollar crisis. Drawing on the hard-learned lessons of the late-18th century, she first makes clear, “There can be no question that our nation’s Founders deliberately sought to ensure that […]

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