America’s Fiscal Follies are Dangerously in the Red
byThe Congressional Budget Office has recently issued a federal “Budget Outlook Update” for the next ten years in the context of the government’s fiscal condition in…
Economic Cycles
Step-change at the Fed – Reaching for the stars
byThe Federal Reserve has changed the emphasis of their dual mandate Inflation targeting will become more flexible in the long-run Full employment has…
An interesting animation on Rothbard’s theory of the Great Depression
byThis is well worth watching and nicely animates the analysis in Rothbard’s classic “America’s Great Depression”. https://www.youtube.com/watch?v=b0SW3BgwL14
The Social and Economic Side Effects of Negative Interest Rates
byOur world is currently suffering from acute schizophrenia. Banks are pushing impact and sustainable investing like crazy, companies are subordinating their production sites and…
When does a recession become a depression?
byDefining a depression as opposed to a recession is open to wide interpretation Recessions are a natural part of the credit cycle Depressions…
An unexpected systemic crisis is for sure
byDownturns in bank credit expansion always lead to systemic problems. We are on the edge of such a downturn, which thanks to everyone’s focus…
The Quick and the Dead
by“The operation was successful but the patient died.” “Teach your kids about compounding: put your money in a savings account and watch it double…
Why the US Economy Is Stronger Than the Eurozone’s
byThe United States is showing resiliency and strength compared with other leading economies worldwide. The impact of the covid-19 forced shutdown crisis is lower in the United States…
Explaining the credit cycle
byThis article summarises why the credit cycle leads to alternate booms and slumps. It is only with this in mind that they can be…
Money Supply Growth in May Again Surges to an All-Time High
byMoney supply growth surged to another all-time high in May, following April’s all-time high that came in the wake of unprecedented quantitative easing, central…