Contra Ben Bernanke, the Gold Standard Promotes Economic Stability
In the past, the alleged instability of economies on the gold standard took place because the authorities were…
Continue readingFrank Shostak
Even After Admitting She Underestimated Inflation, Janet Yellen Still Doesn’t Understand What It Is
Contrary to popular thinking, inflation is not about general increases in the prices of goods and services but about…
Continue readingWhat Is Stagflation and What Causes It?
Things are different once money is generated out of “thin air” due to central bank policies and…
Continue readingGovernment Spending Is the Real Tax; Deficits Are a Sideshow
The more government spends, the less savings will be available for the wealth-generating private sector…
Continue readingFederal Reserve Policies Aimed at Creating Price Stability Bring About Economic Instability
The ever-growing interference with the workings of markets drives the US economy toward persistent economic impoverishment and…
Continue readingForget What the “Experts” Claim about Deflation: It Strengthens the Economy
The emergence of deflation is always good news, since it is in response to…
Continue readingEconomic Theory Begins with Human Action, Not Data Sets
Without a theory that “stands on its own feet,” various mathematical and statistical methods cannot assist an analyst in…
Continue readingHow the Fed’s Tampering with the Policy Rate Affects the Yield Curve
A visible downtrend in the spread does not bode well for economic activity in…
Continue readingThe Fed Cannot Undo the Damage It Has Already Caused
No central bank interest rate manipulation will change this. Any attempt by central bank policy makers to…
Continue readingCan Government Successfully Counter Recessions Through Expansionary Policies? Don’t Count on It
Whenever the signs of an economic weakness emerge, most economic and political commentators declare that the government should…
Continue readingMoney and Savings Are Not the Same Thing
Savings are about consumer goods production in excess of the consumption of these goods. Saving is not about…
Continue readingWhy Employment Is Not the Key to Economic Growth
A reduction in unemployment is not the key factor for economic growth. The heart of economic growth is…
Continue readingWhy Gold Is More Expensive Than Bread
Why do individuals assign a greater value to gold than to bread, when bread seems to be more “useful” than gold?
Continue readingHow GDP Stats Create the Illusion of Fed-Fueled Economic Growth
Bubble activities cannot sustain themselves without support from central bank monetary pumping…
Continue readingHow to Avoid Depressions? Foster Saving and Investment
Contrary to the popular thinking, economic depressions are not caused by a strong decline in…
Continue readingHow Much Control Does the Central Bank Have over Interest Rates?
The central bank can manipulate the interest rate to whatever level it desires. However, it cannot…
Continue readingMoney Supply Growth Is Slowing: That Points to a Slowing Economy
The massive monetary pumping by the Fed has likely undermined the pool of savings already. Consequently, the economic growth rate will…
Continue readingBefore a Bust, There Is Always a Boom (and Malinvestment)
Once banks start to lend money not backed by savings, this sets in motion the…
Continue readingSavings Are the Foundation of Economic Growth
In the real world, one has to become a producer before one can demand goods and services…
Continue readingSound Money (Gold) Versus Fiat Money (Unbacked): Effects On The Boom-Bust Cycle
The key to the emergence of the boom-bust cycle is the expansion in money supply out of “thin air.” The increase in the supply of gold has…
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