Thursday, 22 June 2017

Monthly Archives December 2011

Free Banking versus Large-scale Credit Expansion

Posted by Gonzalo Schwarz
December 28, 2011

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 […]

Read More

Congress Changes Gold Into Paper, Dogs into Cats

Posted by Gonzalo Schwarz
December 28, 2011

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 […]

Read More

Rules versus Solidarity

December 22, 2011

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 […]

Read More

What Is Interest?

Posted by Gonzalo Schwarz
December 22, 2011

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 […]

Read More

What About Money Causes Economic Crises?

Posted by Gonzalo Schwarz
December 20, 2011

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 […]

Read More

What the Price of Gold Means

Posted by Tyler Watts
December 19, 2011

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 […]

Read More