Garet Garrett warned of uncontrolled public debt in 1931, and still the lesson has yet to be heeded. A crisis of interventionism, as termed by Ludwig von Mises, is fast approaching.
Posts Tagged ‘Credit’
Why Economic Stimuli Don’t Work
There are already talks of a second stimulus package. This will only bring about greater poverty and greater illusion of recovery. The future remains bleak for world prosperity.
The Case Against the Issue of Fiduciary Media
Ludwig von Mises on the issue of fiduciary media, from his first book on the topic of money: “The Theory of Money and Credit”.
Thoughts on Fractional-Reserve Banking
One of the most heated topics within the school of Austrian Economics is whether or not fractional-reserve banking would or should exist in a free market. There are considerable arguments put forth in support of either opinion by various scholars, but ultimately it seems as if fractional-reserve banking does not pass the test.
The Panic of 1837 and the Contraction of 1839-43
The standard interpretation of the Panic of 1837 and subsequent recession blamed statebank monetary inflation abetted by President Jackson’s removal of the federal deposits from the Bank of the United States. Scott Trask, in a paper for the Mises Institute, offers a more Austrian explanation.
Consumer Credit and the Theory of the Cycle
Economist Jesús Huerta de Soto explains the role of consumer credit in the formation of the business cycle, in accordance with the Austrian theory. From his book, “Money, Bank Credit and Economic Cycles”.
A New Perspective on Roosevelt’s Recession of 1937
From the essay “The Dangerous “Lessons” of 1937. Roosevelt’s Recession of 1937 may be more relevant to the current financial situation in the United States than the Crash of 1929. This is because we may be headed in the same direction.
Bubble Economics
A comment on Paul Krugman’s post on the housing market, interest rates and Ben Bernanke. By looking at irrelevant statistics one does nothing to avert future crises of the same nature—credit bubbles do not only form in housing.