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…
What 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…
Who 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…
What 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…
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…
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…
Who 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…
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…
The Heat Death of the Economic Universe
Physicists say that the universe is expanding. However, they hotly debate (pun intended) if the rate of expansion is sufficient to overcome gravity—called escape…
Wealth-Destroying Zombies
The hot topic in monetary economics today (hah, if it’s not an oxymoron to say these terms together!) is whither interest rates. The Fed…