How Is Negative Interest Possible?
Germany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is…
Read MoreCan boom-bust cycles emerge in a free market economy where gold is money?
Following the Austrian Business Cycle Theory (ABCT), the boom-bust cycle emerges in response to a deviation in the market interest rate from the…
Read MoreFriends of Freedom, Do Not Despair
riends of freedom can easily become despondent when they look at what appear to be the ideological and political trends that fill the media…
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The shape of the yield curve and the state of the economy
On Wednesday August 14 2019, participants in financial markets were shocked by the news that the differential between the yield on the 10-year…
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Inflationary financing and GDP
This article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…
Read MoreTake Shelter 2.0
“The most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’” Ronald Reagan. “When Nobel Prize-winner…
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Chinese currency manipulation – Trump’s petard
The risk that the Sino-US trade war morphs into an international currency war has risen The US$ Index is up since 2010 but its…
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Inflationary financing and GDP
This article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…
Read MoreHow Much Damage Will Come from this Trade War?
First, the good news: the U.S. and world economies have not imploded, so far, as fallout from the rising trade tensions between the Trump…
Read MoreWhy Keynes Believed Efforts to Fight Income Inequality Hinder Economic Growth
he economist John Maynard Keynes (1883-1946) famously said, “in the long run we are all dead.” He wasn’t saying we should ignore the long…
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