Say’s law and macroeconomic ignorance
Probably the greatest error in modern economics was the abandonment of Say’s law, otherwise known as the law of the markets. In a nutshell,…
The benefits of a saving culture
Savings are a vital component of any successful economy, and the foolishness behind the paradox of thrift is exposed in this article. It has…
Rising rates lead to financial accidents
A recent Bank for International Settlements paper warning of unappreciated risks in foreign exchange markets echoes my earlier warning in an article for Goldmoney…
Legal definitions of money and credit
At these times of growing confusion over the future of currencies’ purchasing power, it is time to remove all doubt in the definitions of…
Banking crisis — the Great Unwind
There is a growing feeling in markets that a financial crisis of some sort is now on the cards. Credit Suisse’s very public struggles…
Imploding credit — the consequences
There is a growing realisation that the world faces a combination of persistent inflation of prices and a recession at the same time. The…
Supply chains, interest rates and inflation
The disruption of global supply chains is seen to be a temporary problem yet to be resolved, but there are good reasons to believe…
Bank credit — friend or foe?
Advocates of sound money place much of the blame for inflation on bank credit. Do away with the creation of bank credit, they say,…
The collapsing euro and its implications
The euro system and its currency are descending into crisis. Comprised of the ECB and the National Central Banks, the system is over its…
Failing states and strangled economies
Fickle markets have stopped worrying about inflation and begun to worry about recession. Both the financial establishment and investors seem incapable of understanding that…