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Up until the late 1960s, it was considered prudent for everyone to have some savings. By forgoing consumption, savings gave the ability to consume more at a later date through the accumulation of interest income. This result is similar to what one hopes to achieve with an investment, but savings and investments should not be confused. A ...
It is clear that Western capital markets no longer generally regard gold as money. It has been relegated to the status of a risk asset, useful collateral, or simply a commodity with a history of being used as money. This is a mistake. The great Austrian economist, von Mises, wrote that true money had to survive the regression test. Put ...
In January of this year I published a piece on the “fair gold price” in order to demonstrate that, if one was to simply treat the gold of all international central banks as the world’s true, reserve currency – as history has held it as for over hundreds, if not thousands, of years – then a logical ...
The hyperinflation of a currency is typically described as an event, as if one day everything is normal and then the next day hyperinflation is manifest throughout the economy. This description explains, for example, how the hyperinflations that destroyed the currencies in Germany in the 1920s, Serbia in the 1990s and Zimbabwe more ...
The following is a transcript of the "Adam Smith Lecture" I gave at a private gathering in London on 19 February. For a long time governments have been redistributing peoples’ income and wealth in the name of fairness. They provide for the unemployed, the sick, and the elderly. The state provides. You can depend on the ...
The ability of a business to maintain accurate and meaningful accounts is undermined by the debasement of the accounting medium, fiat currency. Understand this and you understand the corrosive effects of weak money. This important subject receives almost no attention. Instead it is argued that a weak currency can stimulate exports and ...
The quantity theory of money and its accompanying equation of exchange are generally accepted as defining the relationship between money and prices. The equation has been expressed a number of ways, always including “velocity of circulation”, which is a variable essential to balance the equation. Few disagree with the simple ...
Despite recent headlines and a great deal of squawking over hints that the latest FOMC minutes heralded a slight (maybe) signal of more hawkish intentions from the Federal Reserve, January saw US M3 rising to almost $15.1 trillion. The Fear Index experienced little change, remaining steady at 2.89%. US government debt is approaching ...
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