{"id":17673,"date":"2016-02-12T11:23:39","date_gmt":"2016-02-12T16:23:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17673"},"modified":"2016-02-12T11:24:00","modified_gmt":"2016-02-12T16:24:00","slug":"17673","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17673","title":{"rendered":"Are You Ready for a Crack-Up Boom?"},"content":{"rendered":"
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Are You Ready for a Crack-Up Boom?\u00a0<\/a><\/h3>\n<\/div>\n
Crack Up!<\/strong><\/div>\n
\n

BALTIMORE \u2013 The Dow rose on Wednesday morning\u2026 after Janet Yellen made soothing remarks about a \u201cgradual\u201d return to normal interest rates. Then investors must have realized that returning to normal is not on the Fed\u2019s agenda. The Dow finished the day down 99 points.<\/p>\n

We haven\u2019t seen normal central bank policy since the Nixon years. Normal is a currency backed by gold, not by PhD economists. Only briefly and episodically, over the last 2000 years, has the world flirted with pure paper or \u201cfiat\u201d money. Every time, the affair was over in a short time\u2026 and regretted for a long time.<\/p>\n

\"1-Fate_of_Currencies\"The result of the usurpation of money by government<\/p>\n

Under a gold standard, credit comes from savings. Thus limited, interest rates typically stand somewhere in the 3% to 6% range. They do not roll around on the barroom floor with the spilt beer, drunks, and sawdust.<\/p>\n

Real credit comes from money that is saved\u2026 taken out of the consumer economy so that it can be used for emergencies and capital investments. When it is paid back \u2013 usually out of increased output \u2013 the world is a richer place.<\/p>\n

But try to trick the economy with phony credit \u2013 money that was never earned and never saved \u2013 and you are just asking for trouble. Said J\u00f6rg Guido H\u00fclsmann, a senior fellow at the Mises Institute:<\/p>\n

\u201cIn no period of human history has paper money spontaneously emerged on the free market. In all known historical cases, paper money has come into existence through government-sponsored breach of contract and other violations of private property rights.\u201d\u00a0<\/em><\/p><\/blockquote>\n

\"Guido_Huelsmann2\"J\u00f6rg-Guido H\u00fclsmann \u2013 a staunch proponent of a free market in money (you can read his book \u201cThe Ethics of Money Production\u201d\u00a0for free here, pdf<\/a>) \u00a0Photo via mises.de<\/p>\n

Giving out more money always gives the economy a temporary lift. People think they are richer.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Are You Ready for a Crack-Up Boom?\u00a0 Crack Up! BALTIMORE \u2013 The Dow rose on Wednesday morning\u2026 after Janet Yellen made soothing remarks about a \u201cgradual\u201d return to normal interest rates. Then investors must have realized that returning to normal is not on the Fed\u2019s agenda. The Dow finished the day down 99 points. We […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,6190,124,7822,951,303,305,3918,534,1100],"class_list":["post-17673","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-bill-bonner","tag-central-banks","tag-crack-up-boom","tag-currency","tag-fed","tag-federal-reserve","tag-fiat-money","tag-monetary-policy","tag-paper-money"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17673"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17673\/revisions"}],"predecessor-version":[{"id":17675,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17673\/revisions\/17675"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}