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Can Constant Money Growth Rule Prevent Boom-Bust Cycles?
CAN CONSTANT MONEY GROWTH RULE PREVENT BOOM-BUST CYCLES? According to the Nobel Laureate in Economics, Milton Friedman, the key cause of the business cycles is the fluctuations in the growth rate of money supply. Friedman held that what is required for the elimination of these cycles is for central bank policy makers to aim at […]
Weekly Commentary: Schumpeter’s Business Cycle Analysis
Weekly Commentary: Schumpeter’s Business Cycle Analysis The work of the great economist Joseph Schumpeter (1883-1950) has always resonated. When I ponder analytical frameworks pertinent to these extraordinary times, none are more germane than Schumpeter’s Business Cycle Analysis. Best known for “creative destruction,” Schumpeter’s seminal work materialized after experiencing the spectacular “Roaring Twenties” boom collapse into […]
Is the Fed Secretly Bailing Out a Major Bank?
Is the Fed Secretly Bailing Out a Major Bank? Prettifying Toxic Waste The promise of something for nothing is always an enticing proposition. Who doesn’t want roses without thorns, rainbows without rain, and salvation without repentance? So, too, who doesn’t want a few extra basis points of yield above the 10-year Treasury note at no added […]
Central Banks Trapped by Their Theories
Central Banks Trapped by Their Theories QUESTION: Hi Martin, I can understand how JP and EU backed themselves into a corner with negative rates. Happy to give them the benefit of the doubt when this all started 3-4 years ago even though it was obvious this was not going to end well.However, what I don’t understand […]
The Fed’s Dangerous Game: A Fourth Round of Stimulus in a Single Growth Cycle
The Fed’s Dangerous Game: A Fourth Round of Stimulus in a Single Growth Cycle The longer the signals in capital markets go haywire under the influence of “monetary stimulus,” the bigger is the cumulative economic cost. That is one big reason why this fourth Fed stimulus — in the present already-longest (but lowest-growth) of super-long […]
Battle for Control
Battle for Control Markets are engaged in a clear battle for control: An active Fed eager to extend the business cycle using asset price inflation as its primary means to generate further debt financed growth on the one hand and deteriorating fundamentals and technicals gnawing at an artificial market construct on the other. Let’s call […]
Trying To Prevent Recessions Leads To Even Worse Recessions
Trying To Prevent Recessions Leads To Even Worse Recessions Deutsche Bank strategists Jim Reid and Craig Nicol wrote a report this week that echos what I and other Austrian School economists have been saying for many years: actions taken by governments and central banks to extend business cycles and prevent recessions lead to even more severe recessions […]
Doug Casey: “This is Going to be One for the Record Books”
Doug Casey: “This is Going to be One for the Record Books” Just because society experiences turmoil doesn’t mean your personal life has to. And a depression doesn’t have to be depressing. Most of the real wealth in the world will still exist—it will just change ownership. What is a depression? We’re now at the […]
How Asset Inflation Will End–This Time
HOW ASSET INFLATION WILL END — THIS TIME Life after death for asset inflation: this is what happens when “speculative fever” remains high even after monetary inflation has paused. This may well have been the situation in global markets during 2019 so far. But history and principle suggest that life after death in this monetary […]
Interest Rates, Funny Money, and Economic Malaise
Interest Rates, Funny Money, and Economic Malaise Since the 2007–8 financial crisis, more and more economists have entertained the idea that there might be some connection between artificially low interest rates and business cycles. By “artificially low” I mean interest rates that are pushed below their natural levels by expansionary monetary policy. The relationship between monetary policy […]
Why central banks cannot really Manage Anything
Why central banks cannot really Manage Anything QUESTION: Marty you recently said that “the entire problem of lowering interest rates to ‘stimulate’ the economy demonstrates that central banks cannot really manage anything.” Is this statement really true? BG ANSWER: Absolutely. There is a basic presumption in all human activity that somehow we possess the power […]
2019 Considered…Macro Population Cycle & Business Cycle Turning Down Together?
2019 Considered…Macro Population Cycle & Business Cycle Turning Down Together? Well, 2019 is here and it’s time to consider what sort of growth is possible. Speaking from a macro’est viewpoint, it’s helpful to acknowledge that 90% of the wealth/ income/ savings and nearly 90% of global energy is consumed by the high and upper middle income nations of […]
2019: The Beginning Of The End (Free Premium Report)
2019: The Beginning Of The End (Free Premium Report) What will happen next & what to do now Welcome to our new readers and a very Happy New Year to everyone! Now that it’s 2019, we’re going to start the new year here at Peak Prosperity by responding to the wishes of our premium subscribers […]
Every Bubble Is In Search Of A Pin
Every Bubble Is In Search Of A Pin The ‘Everything Bubble’ has popped Now that the world’s central banking cartel is taking a long-overdue pause from printing money and handing it to the wealthy elite, the collection of asset price bubbles nested within the Everything Bubble are starting to burst. The cartel (especially the ECB […]
Honest Work for Dishonest Pay
Honest Work for Dishonest Pay Misadventures and Mishaps Over the past decade, in the wake of the 2008-09 debt crisis, the impossible has happened. The sickness of too much debt has been seemingly cured with massive dosages of even more debt. This, no doubt, is evidence that there are wonders and miracles above and beyond […]
