How to maintain a bull market after coronavirus
Everyone thinks they know the cause and effect of the Federal Reserve’s response to crises such as 2008 and 2020. The Fed prints money to buy…
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It’s Only Paper
The response to the virus has added a new mechanism of capital consumption to the many we have documented over the years. Businesses…
Read MoreTargeting nGDP Targeting
Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not…
Read MoreThe Perversity of Negative Interest
Today, we want to say two things about negative interest rates. The first is really simple. Anyone who believes in a theory of interest…
Read MoreA 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…
Read MoreHow 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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