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Olduvai III: Catacylsm
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CAN CENTRAL BANKS GO BANKRUPT?

CAN CENTRAL BANKS GO BANKRUPT? A TDV subscriber forwarded us an article that said the Federal Reserve was dangerously close to going “bankrupt,” stating, “In direct figures, the Fed has $4.485 trillion in assets, but a whopping $4.428 trillion in liabilities, leaving only $57 billion, or about 1.28%”. The article stated that, “if the value of the […]

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How money creation threatens hyperinflation

How money creation threatens hyperinflation In order to understand the relationship between money creation and the price level, we first need to get some definitions straight. To Austrians the terms inflation and deflation refer to money and not prices. There is no doubt that money has experienced unprecedented inflation. In February of 2010 base money […]

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Japan Is Writing History As A Prime Boom And Bust Case | Gold Silver Worlds

Japan Is Writing History As A Prime Boom And Bust Case | Gold Silver Worlds. Recently, we wrote a paper about the dynamics behind the boom and bust cycles, based on the view of the Austrian School (the Austrian Business Cycle Theory, or ABCT). The key takeaway was that central banks don’t help in smoothing […]

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The Banking System Can’t Lend Out Reserves, But a Bank Can – Ludwig von Mises Institute Canada

The Banking System Can’t Lend Out Reserves, But a Bank Can – Ludwig von Mises Institute Canada. This post will seem simple to some, but I want to correct a slight confusion I’ve seen over the last several years in the economics blogosphere. (I was motivated to write because of an exchange with Nick Freiling, who […]

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The Austrian Case Against Economic Intervention – Ludwig von Mises Institute Canada

The Austrian Case Against Economic Intervention – Ludwig von Mises Institute Canada. The basic unit of all economic activity is the un-coerced, free exchange of one economic good for another based upon the ordinally ranked subjective preferences of each party to the exchange. To achieve maximum satisfaction from the exchange each party must have full […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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