Tu ne cede malis, sed contra audentior ito Website powered by Mises Institute donors Mises Institute is a tax-exempt 501(c)(3) nonprofit organization. Contributions are tax-deductible to the full extent the law allows. Tax ID# 52-1263436 [embedded content] Tags: Featured,newsletter
Read More »Hubris Runs Rampant at the Fed
Tu ne cede malis, sed contra audentior ito Website powered by Mises Institute donors Mises Institute is a tax-exempt 501(c)(3) nonprofit organization. Contributions are tax-deductible to the full extent the law allows. Tax ID# 52-1263436 [embedded content] Tags: Featured,newsletter
Read More »The Prospects of War
Tu ne cede malis, sed contra audentior ito Website powered by Mises Institute donors Mises Institute is a tax-exempt 501(c)(3) nonprofit organization. Contributions are tax-deductible to the full extent the law allows. Tax ID# 52-1263436 [embedded content] Tags: Featured,newsletter
Read More »A Principled View of Nations and Nationalism
In Nations by Consent Murray Rothbard draws an important distinction between the nation and the state. While he regards the state as predatory, exploitative, parasitic and criminal, he does not view nations formed by consent as coterminous with the state. In his view the concept of the nation and the aspiration to form nations by consent reflect “subjective feelings of nationality based on objective realities” of time and place into which people are born. Rothbard...
Read More »Why the Bubble Economy Isn’t the Real Economy
There is a grand economic fable that has been unfolding over the past two decades, one filled with mythical creatures and great fantasy. The main character of this fable is the grand wizard of the markets, the Federal Reserve.Like all great fables, it starts with magic. Over the last twenty years, the grand wizard of the markets magically created over $7 trillion dollars by cheating time through the spell of negative real interest rates. This magic fueled the...
Read More »Central Bank Digital Currencies Are Dangerous and Unnecessary
The main central banks have been deliberating on the concept of introducing a digital currency. However, many citizens fail to grasp the rationale behind it when the majority of transactions in major global currencies are carried out electronically. Nevertheless, a central bank digital currency is much more than electronic money. I will explain why.Central banks are raising interest rates and enacting restrictive monetary policies as quickly as governmental...
Read More »The Fed Has Busted Housing Bubble 2.0
As Austrian Business Cycle Theory explains, big-ticket capital expenditures are heaving influenced by interest rates, as we discussed here.Since housing is a big-ticket capital expenditure, demand for housing is strongly influenced by interest rates, which makes it an excellent leading indicator of the business cycle. The weakness we are seeing in housing now is one key reason I expect a major recession to likely start this year.The Fed Caused Housing Bubble 1.0The...
Read More »The Folly of Federal Reserve Stabilization Policy: Part I 1948-1985
The Federal Reserve Board is responsible for formulating macro stabilization policy. More specifically, the Federal Reserve Board seeks tradeoffs between inflation and unemployment rates. Fed officials need meaningful data to formulate useful policies. Data on the unemployment rate that coincides with zero inflation provides a starting point for policy formulation. Fed officials also need data on the rate at which inflation reduces unemployment rates. Finally, data...
Read More »The Myth of National Defense Spending
Among the most persistent of myths in the sphere of economics is of the supposed benefits of government spending in the economy. Apologists will include government spending in gross domestic product measures, as if government production is truly “productive.” A common argument in favor of government spending is national defense spending.US senator Tommy Tuberville (R-AL) declared on Twitter that he would be voting against a defense package that would send further...
Read More »Australian Government Blames Grocery Retailers for Inflation
In 2024 the Australian senate is establishing an inquiry into Coles and Woolworths, the two biggest grocery retailers in the country. These two retailers hold a market share of two-thirds of the retail grocery market in Australia.This follows sharp rises in government spending, inflation, consumer prices, and lending rates following the Covid crisis. Instead of addressing inflation-fueled spending, governments have chosen grocery retailers as the bad guy to blame for...
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