Wednesday, 18 October 2017

Inflation

The Inflation Tax

Posted by Jerry Jordan
July 20, 2017
in Blog

Can you name an official at a major central bank who expresses worries that inflation is now, or soon will be, too high?  Can you identify any financial publication–even the Wall Street Journal–that does not report that recent inflation data have been “disappointing?” To paraphrase former President Nixon, are we “all inflationists now?” Twenty years […]

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We are Taxed Enough Already

Posted by Jerry Jordan
July 18, 2014
in Blog

Today’s T.E.A. party adherents have it right. We are Taxed Enough Already! So why is raising the inflation tax gaining popularity with policymakers around the world? The central idea of post WWII monetary arrangements was that the US dollar would be firmly pegged to gold at a fixed rate and the rest of the world […]

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Yellen, the Hawk?

Posted by Gonzalo Schwarz
October 29, 2013
in Blog

  By Steve H. Hanke This article appeared in the November 2013 issue of Globe Asia.   Well, it’s official. President Obama has picked Janet Yellen as his nominee to be the next Federal Reserve Chairman. In the months leading up to this announcement, the press unanimously dubbed Yellen the Queen of the Doves, pointing […]

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Little Difference Between Monetary Activists Yellen, Summers For Top Fed Post

Posted by Gonzalo Schwarz
September 3, 2013
in Blog

By JEFFREY BELL AND RICH DANKER There is thought to be a pitched battle raging within the White House over President Obama’s pick to succeed Federal Reserve Chairman Ben Bernanke when his term expires early next year. Bernanke’s deputy Janet Yellen is the liberal favorite for her vocal position in favor of continued monetary stimulus, […]

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Commentary on Troubled Currencies

Posted by Gonzalo Schwarz
July 25, 2013
in Blog

by Steve Hanke For academics, the term “troubled currency” might be a term of art. But for people who are faced with such a currency, they know a troubled currency when they see one. Today, this is the case for millions of people around the world — most notably in Iran, North Korea, Argentina, Venezuela, […]

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What will stop the Fed?

Posted by Alex Chafuen
July 10, 2013
in Blog

by Alex Chafuen Central Banks have been tools to destroy rule of law in many countries. “The most secretive organization in America operates without any accountability to the American people. Hiding in the shadows, pretending to be part of the United States government, its power is beyond measure.”  A new thriller by Brad Thor uses […]

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Arizona Legislature Approves Gold and Silver as Money

Posted by Gonzalo Schwarz
April 26, 2013
in Blog

By Alex Newman As trust in the Federal Reserve System and its fiat dollar continues to plummet worldwide, legislation making gold and silver into legal tender was given final approval by Arizona lawmakers on Monday when the Republican-led state House of Representatives voted overwhelmingly in favor of the bill. With tremendous grassroots support, an earlier […]

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Private innovation in currencies is a good thing

Posted by Gonzalo Schwarz
April 22, 2013
in Blog

by Matt Ridley I have a column in the Times on bitcoins and their implications for private money Bitcoins — a form of digital private money — shot up in value from $90 to $260 each after Cypriot bank accounts were raided by the State, then plunged last week before recovering some of their value. […]

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Hyperinflation? No. Inflation? Yes.

Posted by Gonzalo Schwarz
March 28, 2013
in Blog

BY STEVE HANKE While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking. Is hyperinflation coming to the U.S.? No. Hyperinflation arises […]

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The Fed’s Tightening Pipe Dream

Posted by Gonzalo Schwarz
March 5, 2013
in Blog

  Does the Chairman really believe that the Fed will be able to just sit back and watch the money supply unwind itself? by Peter Schiff Testifying before the US Senate this past Tuesday, Fed Chairman Ben Bernanke made an extraordinary claim about its bloated balance sheet: “We could exit without ever selling by letting […]

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Debunking the Myths About Central Banks

Posted by Gonzalo Schwarz
March 1, 2013
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By GERALD P. O’DRISCOLL JR. Myths govern modern central banking. Like many myths, they contain an element of truth that has been distorted by exaggeration and misapplication. This year marks the 100th anniversary of the U.S. Federal Reserve System—an appropriate time for some long-overdue myth-busting. The first myth is that central banks are intrinsically necessary […]

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Monetary Policy and Heightened Price Volatility in Raw Materials Markets

Posted by Gonzalo Schwarz
January 29, 2013
in Blog

By Robert Higgs Despite the Fed’s breathtaking increase of base money since the autumn of 2008, the money stock as measured by conventional concepts such as M2 has not increased greatly, and hence, as ordinary quantity-theory-of-money thinking would lead us to expect, inflation as measured by conventional concepts such as the consumer price index (CPI) […]

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Money in Bad Faith

Posted by Gonzalo Schwarz
January 21, 2013
in Blog

The depredations of the Fed. by Judy Shelton The Federal Reserve is not your friend. Whether you reside on Wall Street or Main Street, whether you are a borrower or a saver, whether you lean toward the Tea Party or the Occupy Wall Street movement​—​or whether you simply believe in free markets and free people​—​loose […]

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The Fed prints and prints, and no huge consumer price inflation?

Posted by Alex Chafuen
January 16, 2013
in Blog

In this piece, Mark Thornton tries to solve the riddle:  “Where is the Inflation?” by Mark Thornton Critics of the Austrian School of economics have been throwing barbs at Austrians like Robert Murphy because there is very little inflation in the economy. Of course, these critics are speaking about the mainstream concept of the price […]

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2012 Currency Rankings In Terms of Gold

Posted by Devin Roundtree
January 2, 2013
in Blog

by Devin Roundtree Now that 2012 has come and gone, here are the 15 most traded currencies ranked by their performance against the yellow metal. Among the top performers, the New Zealand dollar and Swedish Krona should not come as a big surprise; the central banks of both countries have gained a reputation for relatively […]

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Sound Money vs. Stable Money

Posted by Gonzalo Schwarz
December 28, 2012
in Blog

by Kenneth Gould Historically, there have been two contrasting monetary doctrines. The first doctrine favors what it calls “sound money,” defined as money that has a purchasing power determined by markets, independent of governments and political parties. A true gold standard is one example of money that has an intrinsic value determined by markets rather than governments. Note that, under a sound money doctrine’s principles, a gold standard where the government […]

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Further Inside the Brain of the Sound Money Advocate

Posted by Gonzalo Schwarz
December 18, 2012
in Blog

by Anthony Randazzo Bloomberg’s recently (and quite rightly) christened “Forbes 30 Under 30” superstar Josh Barro is inside my head. Or at least that’s what the title of his recent post for The Ticker implies. But since he kindly didn’t dig deeper in exploring the depths of our depraved “Hard-Money Advocate” Brains, let me clear up […]

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Too Late, Fiscal Cliff. Bracket Creep Beat You To It.

Posted by Gonzalo Schwarz
December 17, 2012
in Blog

by Devin Roundtree In order to avert next year’s automatic spending cuts, President Obama has called for a return to President Clinton’s higher tax rates on incomes over $200,000 ($250,000 for joint filers). But the President’s proposal will actually increase rates well beyond his democratic predecessor. Back in the 1970s when inflation ran wild, many […]

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Myth 8: The Gold Standard Helped Spread the Great Depression to the Rest of the World

Posted by Gonzalo Schwarz
December 14, 2012
in Blog

by Lawrence H. White The second part of the “Golden Fetters” indictment, to quote a recent statement of it (Bordo 2010, p. 40), is that “The Great Depression spread across the world via the fixed exchange rate gold standard.”  In Eichengreen’s (1992, p. xi) earlier words, the international gold standard “transmitted the destabilizing impulse from […]

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The Case For 100% Reserve Banking

Posted by Devin Roundtree
December 14, 2012
in Blog

by Devin Roundtree Even among the most vocal advocates of returning to a gold standard, a banking system that requires banks to reserve 100% of all deposits redeemable on demand is considered impractical and a hindrance to economic growth. However, not only is 100% reserve banking practical, it is lawful and will not create credit […]

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Myth 7: The Gold Standard was Responsible for the Deflation that Ushered in the Great Depression

Posted by Gonzalo Schwarz
December 13, 2012
in Blog

by Lawrence H. White The most prominent set of criticisms of the gold standard among academic economists in recent years blame the gold standard for the creating the Great Depression in the United States and for then spreading it internationally.  Douglas Irwin (2011, p. 1) summarizes the case and identifies its most cited source: Modern […]

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A Golden Path: Reply to Professor Cochran

Posted by Gonzalo Schwarz
December 5, 2012
in Blog

by Godfrey Bloom and Patrick Barron In his recent Mises Daily article “Fool’s Gold Standards,” John P. Cochran warns his readers against accepting any monetary reform less than that of money created by the free market. Therefore, he felt it necessary to criticize our previous Mises Daily article “A Golden Opportunity,” in which we advised Germany to leave the European Monetary Union, […]

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Job Creation via Jobless Benefits and Fed Money Printing : Signs of a Modern Day Depression

Posted by Gonzalo Schwarz
November 30, 2012
in Blog

by Tim Iacono When reading Wall Street Journal stories such as CBO: Unemployment Extension Would Add 300,000 Jobs, it’s easy to come away with the impression that the economic world we live in is radically different than it was just a few years ago. And, now almost three-and-a-half years after the Great Recession officially ended in 2009, […]

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Inflation and Monetary Manipulation as Incentives for Corruption

Posted by Alex Chafuen
November 29, 2012
in Blog

by Alex Chafuen The Adam Smith Institute (U.K.) has published a valuable piece reminding readers about the corrupting effects of inflation.   My professor of professional ethics, at the Catholic University of Argentina, taught us that printing money was “lying, knowing that you are lying, and stealing, knowing that you are stealing.”[1]   But the ethics of […]

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Inflation, Unemployment, and Gold

Posted by Gonzalo Schwarz
November 28, 2012
in Blog

Written by Kathleen Packard Washington Post’s Neil Irwin wrote after the election, “To economists, inflation is the dog that didn’t bite. Despite fears among commentators that the Federal Reserve’s easy money policies would cause rising prices, the consumer price index rose only 2 percent over the last year, exactly what the Fed aims for. And investors […]

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Sound money? Pah!

Posted by Gonzalo Schwarz
November 26, 2012
in Blog

By Chris Dillow Stock markets rise and fall with US inflation expectations We need more inflation. That’s the message of stock markets. For a long time, there has been a huge correlation between US inflation expectations, as measured by the gap between 10-year Treasury yields and their inflation-proofed equivalents, and the S&P 500; since January […]

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The Money and Banking Quiz

Posted by Gonzalo Schwarz
November 13, 2012
in Blog

by PaulC If you’re reading this, I suspect that you already have a good understanding of the fraudulent nature of our monetary and banking system (or are well on your way to figuring it out). But how do you communicate that knowledge to someone who has no idea? If you’ve ever tried, you know it’s […]

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Is the Fed Playing Chicken with Inflation?

Posted by Devin Roundtree
November 9, 2012
in Blog

According to the Bureau of Labor Statistics, consumer prices have risen only 2% since this time last year. But according to my eyes this is nonsense. For example, over the last month I have twice experienced the effects of large price increases with regards to America’s favorite poultry, chicken. During one weekend I was desperate […]

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Panic in Persia as Hyperinflation Hits Iran

Posted by Gonzalo Schwarz
November 8, 2012
in Blog

by Steve H. Hanke For decades, the Iranian economy has been cobbled together by religious-bureaucratic regimes that have employed mandates, regulations, price controls, subsidies and a wide variety of other interventionist devices, in an attempt to achieve their goals. It’s all been kept afloat – barely afloat – by oil revenues. Shortly after Mahmoud Ahmadinejad […]

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What You Should Know About Inflation

Posted by Gonzalo Schwarz
October 30, 2012
in Blog

by PaulC During Henry Hazlitt’s tenure as a business columnist for Newsweek, he was frequently asked by his readers for an explanation of the cause of inflation and how they might protect themselves from its continual erosion of their savings.  What You Should Know About Inflation is the result of those requests.  Although first published in 1960, […]

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Iran’s Death Spiral – II

Posted by Gonzalo Schwarz
October 25, 2012
in Blog

Is the Rial cooked? by Steve H. Hanke My October 2009 Globe Asia column was titled “Iran’s Death Spiral.” In light of the recent events that have transpired in Iran, I think I might have been onto something back in 2009. Since early September, there has been an accelerated slide in the value of the […]

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Gold Can Save Us From Disaster

Posted by Gonzalo Schwarz
October 24, 2012
in Blog

by Steve Forbes A new gold standard is crucial. The disasters that the Federal Reserve and other central banks are inflicting on us with their funny-money policies are enormous and underappreciated. An unstable dollar is wreaking havoc on our capital markets, depriving us of money for productive enterprises and future enterprises while subsidizing government debt […]

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Money Printing is the Only Thing Keeping the System Afloat

Posted by Gonzalo Schwarz
October 19, 2012
in Blog

By Alasdair Macleod Last Monday GoldMoney published my article showing the frightening growth in money-quantities for the US dollar. In that article I stated that the hyperbolic rate of increase, if the established trend is maintained, is now running at over $300bn monthly, while the Federal Reserve is officially expanding money at only $85bn. The first […]

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Money Mistakes

Posted by Gonzalo Schwarz
October 17, 2012
in Blog

  by Tom Woods As I noted not long ago, I find myself in serious disagreement with a portion of the end-the-Fed movement. This is the segment of the movement whose complaints are that the Federal Reserve is “privately owned,” that the Fed does not inflate enough, that interest payments are unjust or inherently unpayable […]

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Inflation: Washington is Blind to Main Street’s Biggest Concern

Posted by Gonzalo Schwarz
October 16, 2012
in Blog

By Peter_Schiff Journalists, politicians and economists all seem to agree that the biggest economic issue currently worrying voters is unemployment. It follows then that most believe that the deciding factor in the presidential race will be the ability of each candidate to convince the public that his policies will create jobs. It seems that everyone got […]

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HuffPo’s 11 Myths About the Fed, Refuted

Posted by Gonzalo Schwarz
October 15, 2012
in Blog

by Tom Woods and Bob Murphy The other day the Huffington Post ran an article by a Bonnie Kavoussi called “11 Lies About the Federal Reserve.” And you’ll never guess: these aren’t lies or myths spread in the financial press by Fed apologists. These are “lies” being told by you and me, opponents of the Fed. Bonnie Kavoussi […]

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Bad Advice for the Greeks

Posted by Gonzalo Schwarz
October 15, 2012
in Blog

 by Patrick Barron This summer Roger Bootle won Lord Wolfson’s £250,000 prize for the best advice for a country leaving the European Monetary Union (one may assume that this advice is aimed at Greece). A more statist, anti-liberal policy than his could hardly be envisioned, which is a sad commentary on the mindset of the judges […]

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Currencies: Re-evaluating the ghost of gold

Posted by Gonzalo Schwarz
October 12, 2012
in Blog

From the ChinaPost.com.tw: Imagine if, over time, as our solar system swings around the Sun, the planet Jupiter suddenly put on a tremendous amount of weight. Over time the gravitational pull of the planets — and the Sun — would begin spinning around Jupiter, causing great celestial upheavals in the process. Nobel laureate Robert Mundell […]

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Signs of the Gold Standard Emerging in China?

Posted by Gonzalo Schwarz
October 12, 2012
in Blog

by Ralph Benko As noted in last week’s column about the rising recognition by authorities in Germany about the virtues of gold, the gold standard is receiving impressive new recognition internationally. The GOP plank calling for a commission to study “possible ways to set a fixed value for the dollar” — with an unmistakable nod to gold — […]

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Paper Money = Despotism

Posted by Gonzalo Schwarz
October 11, 2012
in Blog

by Wendy McElroy “Fiat” is money with no intrinsic value beyond whatever an issuing government is able to enforce. When it enjoys a monopoly as currency, fiat inevitably turns the free market functions of money inside out. Instead of being a store of value, the currency becomes a point of plunder through monetary policies such as […]

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What Will Benefit From Global Recession? The US Dollar

Posted by Gonzalo Schwarz
October 9, 2012
in Blog

A very interesting article by Charles Hugh Smith of the Of Two Minds blog, and in line with the view that, even as all of the ships sink, the last one to go down will look very good for a while. For this reason the US dollar will be the beneficiary of the Euro’s distress, […]

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Easy Money Is Punishing the Middle Class

Posted by Gonzalo Schwarz
October 5, 2012
in Blog

A policy of low but persistent inflation anesthetizes workers to declining real wages. By SEAN FIELER With the Republican Party committed to a gold commission and the Federal Reserve committed to easy money, a substantive debate about the principles underpinning our monetary system is finally in the offing. For sound money to carry the day, Republicans […]

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Does QE3 Mark the Beginning of the End of the Bond Bubble?

October 2, 2012
in Blog

  With savings rates at historic lows and budget deficits at historic highs, it makes little sense that interest rates should remain this low for this long. While the Federal Reserve has received much praise for keeping rates low with its Quantitative Easing program, the congratulations rightfully belong to the European debt crisis. It is […]

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Twin Demons

Posted by Gonzalo Schwarz
October 1, 2012
in Blog

by Llewellyn H. Rockwell Jr. [This talk was delivered at the Mises Circle in New York City on September 14, 2012.] The 20th century was the century of total war. Limitations on the scope of war, built up over many centuries, had already begun to break down in the 19th century, but they were altogether obliterated in the […]

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Two Legends in Economics Wrestle Over the Euro’s Future

Posted by Gonzalo Schwarz
September 28, 2012
in Blog

By Shawn Tully FORTUNE — Robert Mundell and Allan Meltzer rank among the most influential economists of the past half-century. Mundell, a professor at Columbia University, garnered a Nobel Prize in 1999, in part for his work in defining what he calls “optimum currency areas.” No academic has ever enjoyed such success seeing his theories into […]

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Death Knells for the USDollar

Posted by Gonzalo Schwarz
September 28, 2012
in Blog

by Jim Willie CB The recent decision by the US Federal Reserve to contaminate the financial body until it responds favorably was the last straw in my book. Witness a declaration of permanent QE and hyper monetary inflation of the most virulent strain, unsterilized. The USFed is essentially admitting failure. The signal serves as the loudest death knell for the USDollar among […]

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A Road to Prosperity

Posted by Gonzalo Schwarz
September 17, 2012
in Blog

The case for a modernized gold standard. By LEWIS E. LEHRMAN   Gold, a fundamental, metallic element of the earth’s constitution, exhibits unique properties that enabled it, during two millennia of market testing, to emerge as a universally accepted store of value and medium of exchange, not least because it could sustain purchasing power over the […]

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Why QE3 Will Fail

Posted by Gonzalo Schwarz
September 17, 2012
in Blog

by Murray N. Rothbard   Study of business cycles must be based upon a satisfactory cycle theory. Gazing at sheaves of statistics without “prejudgment” is futile. A cycle takes place in the economic world, and therefore a usable cycle theory must be integrated with general economic theory. And yet, remarkably, such integration, even attempted integration, is […]

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The San Fran Fed Asks What People Think Of QE3: The People Respond

Posted by Gonzalo Schwarz
September 17, 2012
in Blog

Submitted by Tyler Durden   On Friday, the San Francisco Fed, best known for such cutting edge research as “Why Is Unemployment Duration So Long?” (turns out it was Bernanke’s fault), “US Household Deleveraging” which concluded incorrectly that “Going forward, it seems probable that many U.S. households will reduce their debt” (turns out completely wrong as […]

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