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Why the economy must grow
Why the economy must grow There are three main reasons why our economy grows: • because it is easier to make money in an economy that is growing • because we all, individuals, companies and governments, borrow money • because we pay interest on the money we borrow. Because it is easier to make money in a growing […]
Covid-19: Global Retrenchment Will Obliterate Sales, Profits and Yes, Big Tech
Covid-19: Global Retrenchment Will Obliterate Sales, Profits and Yes, Big Tech If you think global demand will rebound as global debt and confidence implode, you better not be making consequential decisions based on Euphorestra-addled magical thinking. Even before the Covid-19 pandemic, the global economy was slowing for two reasons: 1) everybody who can afford it already […]
Chapter 8: Negotiable Debt, A Bit of History
CHAPTER 8: NEGOTIABLE DEBT, A BIT OF HISTORY This chapter is a quick summary and clarification of what happens when debt becomes negotiable. The focus is on money, but other aspects are referred to, highlighting the general undesirability of making debt negotiable. There will be some repetition of material previously covered, for the sake of […]
New Monetary Theory is Like Sleepwalking
New Monetary Theory is Like Sleepwalking QUESTION: Bernie Sanders was basing his whole economic proposal to just keep spending and make everything free. They seem to be teaching this in school now. This macroeconomic theory whereby a country’s spending is only constrained not by revenue in taxes but by inflation when it creates a sovereign currency. […]
Democratizing Money
Democratizing Money The Green New Deal has been in the air lately. In a recent piece on this website, Rob Urie writes that the Green New Deal is “the last, best hope for environmental and social resolution outside of rapid dissolution toward dystopian hell.” Quite a claim. Let’s take a closer look. The Green New […]
The Politics of Debt-Serfs and Tax Donkeys: Our Only Choice Is the Least Bad Option
The Politics of Debt-Serfs and Tax Donkeys: Our Only Choice Is the Least Bad Option The reality is there is no avenue left for advocacy, grievances or redress in a system dominated by global corporations and self-serving political insiders. What’s striking about the protests in Paris against higher fuel taxes is the universality of the […]
The Great Depression II
The Great Depression II Whenever a movie has been a huge hit, the film industry tries to follow it up by doing a sequel. The sequel is almost invariably far more costly, as there’s the anticipation by those who create it that it will be an even bigger blockbuster than the original. The Great Depression […]
US Spending On Interest Hits All Time High As Budget Deficit In Trump’s First Year Soars To $779 Billion
US Spending On Interest Hits All Time High As Budget Deficit In Trump’s First Year Soars To $779 Billion One month ago we already knew that the U.S. budget deficit for the 2018 fiscal year – Trump’s first full year in office – would be jarring after the August deficit soared to $211 billion, nearly […]
Clinging to Old Theories of Inflation
Clinging to Old Theories of Inflation QUESTION: Mr. Armstrong, I think I am starting to understand your view of inflation. It is very complex. I think some people cannot think beyond a simple one dimension concept as you often say. So I am trying to be more dynamic in my thinking process. Here you point […]
Whatever Happened to Saving for a Rainy Day?
Michael Brochstein/SOPA Images/LightRocket via Getty Images Whatever Happened to Saving for a Rainy Day? The US will be paying for its current fiscal excesses with the promise of future payments. But inefficient economic stimulus now will not give future generations the productive resources needed to make good on it. CAMBRIDGE – More than a decade […]
The degenerative impacts of our money system
The degenerative impacts of our money system “The way that a national economy preys on its internal colonies is by the destruction of communities” — Wendell Berry The creation of money with interest has two main impacts on the operation of today’s economies. Our monetary system creates the need for economic growth by design One of the […]
The Kids Are Not Alright
The Kids Are Not Alright Debt initially dazzles and deceives, then it disappoints, disillusions, devastates, and destroys. The thing governments do best is borrow. Performance varies across the range of their purported functions—warfare, maintenance of public order, provision of goods and services, redistribution, regulation—but they all go into debt. The structure of governments and their […]
Venezuela Just 24 Hours Away From Formal Declaration Of Default
Venezuela Just 24 Hours Away From Formal Declaration Of Default Less than a week after Venezuela shocked the world by announcing it would proceed to restructure its massive external debt, even as it was within the grace period on hundreds of millions in unpaid interest expense, on Thursday the socialist nation confirmed it has never […]
Positively Natural – Pt I
Positively Natural – Pt I THE CASE FOR POSITIVE INTEREST An Austrian rebuttal of Summers et al, in four parts THE TIME IS OUT OF JOINT Over the years, any number of psychological experiments have been conducted in order to validate – or at least to give a veneer of academic corroboration to – a truth […]
