A Wealth Tax Consumes Capital
It seems one cannot make a name for one’s self on the Left, unless one has a proposal to tax wealth. Academics like Tomas…
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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…
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Obvious Capital Consumption
We have spilled many electrons on the topic of capital consumption. Still, this is a very abstract topic and we think many people still struggle…
Read MoreWhat They Don’t Want You to Know about Prices
ast week, in part I of this essay, we discussed why a central planner cannot know the right interest rate. Central planner’s macroeconomic aggregate measures like…
Read MoreWho Knows the Right Interest Rate
On January 6, we wrote the Surest Way to Overthrow Capitalism. We said: “In a future article, we will expand on why these two statements…
Read MoreWhat Can Kill a Useless Currency
There is a popular notion, at least among American libertarians and gold bugs. The idea is that people will one day “get woke”, and…
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Why the Fed Denied the Narrow Bank
It’s not every day that a clear example showing the horrors of central planning comes along—the doublethink, the distortions, and the perverse incentives. It’s…
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Monetary Consequence of Tariffs
Last week in Monetary Paradigm Reset, we talked about the challenge of explaining a new paradigm. We said: “The hard part of accepting this paradigm…
Read MoreWho Would Invest in a Gold Bond?
Berkshire Hathaway CEO Warren Buffet famously dismissed gold. “Gold has two significant shortcomings, being neither of much use nor procreative.” I have recently written…
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The Benefits of Issuing Gold Bonds
A gold bond is debt obligation that is denominated in gold, with interest and principal paid in gold. As I will explain below, it’s…
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