-
There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.
Ludwig von Mises
Categories
- Economics in One Lesson (4)
- Uncategorized (126)
Archives
- March 2014 (2)
- January 2014 (2)
- November 2013 (1)
- October 2013 (1)
- August 2013 (2)
- July 2013 (2)
- May 2013 (3)
- April 2013 (4)
- March 2013 (6)
- February 2013 (7)
- January 2013 (12)
- December 2012 (2)
- September 2012 (1)
- July 2012 (1)
- June 2012 (4)
- May 2012 (3)
- April 2012 (11)
- March 2012 (8)
- February 2012 (7)
- January 2012 (16)
- December 2011 (9)
- November 2011 (7)
- October 2011 (9)
- September 2011 (10)
Twitter
- Kept in the dark wp.me/p1O9ar-c0 6 years ago
- What has the MPC got to hide? wp.me/p1O9ar-bP 6 years ago
Monthly Archives: September 2011
The illegitimacy of government debt
While we’re in a serious sovereign debt crisis, I’d like to play a little thought experiment. Imagine that Ben takes out a loan in my name, to fund his own spending that I do not consent to. The nature of … Continue reading
What of the euro?
I recently spent a very enjoyable 5 days travelling around the Low Countries of Northern Europe with a friend of mine. We drove through abandoned border posts, and used one currency across 5 borders – quite amazing! Our language skills … Continue reading
2 minute explanation of boom and bust
I haven’t had time for any detailed blogging over the past few days, so here’s a snappy summary of how booms and busts are caused by government’s control of the money supply. It comes from Learn Liberty, who have lots … Continue reading
Carswell calls for currency competition
Douglas Carswell MP, a Tory backbencher, today called for a Commons debate on legal tender laws and currency competiton. From the BBC: Parliament is to debate a call for foreign currencies to be made legal tender in the UK. Such … Continue reading
Legal tender laws
Government coercion is pervasive in modern society, and seems to be growing daily. Whilst governments of old would not have cared to regulate your diet or how long you left your horse and cart at the market, states have always … Continue reading
Centrally set interest rates as price controls
In a previous post, I argued that setting interest rates by government fiat is akin to price controls. But why are price controls harmful? Let’s take the example of the price of oil. Without government intervention, prices would be set … Continue reading
What is money?
The primary function of money is that of a medium of exchange, and secondarily as a store of value. It allows us to progress beyond barter, and buy and sell goods we otherwise not be able to. Money is a … Continue reading
What are interest rates?
Often politicians, economists and pundits talk about lowering interest rates to boost the economy by increasing lending. Right now, the Bank of England has interest rates at 0.5%, and the world over central banks have rates at record lows, all in the hope of stimulating … Continue reading
Posted in Uncategorized
Tagged business cycle, central planning, economics, interest rates
1 Comment
Why are central banks harmful?
Contrary to the wonderful sounding description given by the Bank of England, in reality, they cause harm throughout the economy, and make all of us poorer. They are the prime cause of inflation, cause business cycles (booms and busts), transfer … Continue reading
What are central banks?
Today, central banks are pretty much universal, it seems that every country has one. Some, such as our own Bank of England, go back to 1694, others are more modern, such as the Bank of Canada, opening in 1935. But … Continue reading