{"id":40036,"date":"2018-11-01T15:26:15","date_gmt":"2018-11-01T20:26:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40036"},"modified":"2018-11-01T15:26:15","modified_gmt":"2018-11-01T20:26:15","slug":"misesians-gather-as-ghost-of-dead-economist-haunts-the-planet","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40036","title":{"rendered":"Misesians gather as ghost of dead economist haunts the planet"},"content":{"rendered":"<h3><a href=\"https:\/\/www.sprottmoney.com\/Blog\/misesians-gather-as-ghost-of-dead-economist.html\">Misesians gather as ghost of dead economist haunts the planet<\/a><\/h3>\n<p>Growing stock market volatility is increasingly reminding investors of downturns that twice crashed valuations by more than 50% since the turn of the century. Many Americans remain perplexed as to why the economy appears to teeter perennially on the brink.<\/p>\n<p>A small group of radical economists, followers of the late Ludwig von Mises, think they know why.<\/p>\n<p>\u201cConventional economists believe that free markets cause booms and busts,\u201d said <b><strong>George Bragues<\/strong><\/b>, an adjunct professor at the <b><strong>University of Guelph-Humber<\/strong><\/b>, who will be speaking at the <a href=\"https:\/\/www.eventbrite.ca\/e\/2018-international-conference-of-prices-markets-tickets-51102146897\">International Conference of Prices and Markets<\/a> taking place in Toronto this weekend.<\/p>\n<p>\u201cThat\u2019s only partially true,\u201d said Bragues <b><strong>.<\/strong><\/b> \u201cThere is a good argument that governments themselves, more specifically central-bank driven borrowing, are the biggest creators of economic euphoria and subsequent depression.\u201d<\/p>\n<p><b><strong>Do governments cause depressions? <\/strong><\/b><\/p>\n<p>Von Mises\u2019s free-market ideology\u2014 so radical it makes the American Republican party look communist\u2014is almost completely ignored by governments, ivy league university economics departments and central banks.<\/p>\n<p>However, that ignorance comes at a price.<\/p>\n<p>Today, the ghost of Von Mises\u2019s ideas haunts much of the planet, where governments have quietly, often secretly, fostered colossal debt bubbles that will almost be impossible to deflate without calamity.<\/p>\n<p>Von Mises\u2019s suggestion that credit bubbles are the key drivers of booms and depression, broadly known as the Austrian Business Cycle Theory, was first outlined in his 1912 book <a href=\"https:\/\/mises.org\/sites\/default\/files\/The%20Theory%20of%20Money%20and%20Credit_3.pdf\">Theory of Money and Credit<\/a>.<\/p>\n<p>Murray Rothbard built on this theory in his own 1963 work <a href=\"https:\/\/mises.org\/library\/americas-great-depression\">America\u2019s Great Depression<\/a>, which provided a convincing case study on how the U.S. government fueled the 1920s stock market expansion, collapse and the ensuing spillover effects.<\/p>\n<p>Mises\u2019s out-of-the-box works are particularly important as the planet inches towards peak debt and what the IMF warns could be an impending depression, because populist socialist politicians such as Bernie Sanders will almost certainly blame the free markets.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Misesians gather as ghost of dead economist haunts the planet Growing stock market volatility is increasingly reminding investors of downturns that twice crashed valuations by more than 50% since the turn of the century. Many Americans remain perplexed as to why the economy appears to teeter perennially on the brink. A small group of radical [&hellip;]<\/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":[124,335,382,418,434,966,545,13228,20614],"class_list":["post-40036","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-free-markets","tag-governments","tag-imf","tag-international-monetary-fund","tag-ludwig-von-mises","tag-murray-rothbard","tag-peter-diekmeyer","tag-sprott-money-news"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40036","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=40036"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40036\/revisions"}],"predecessor-version":[{"id":40037,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40036\/revisions\/40037"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}