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Excess bank reserves

As Frank Shostak predicted in his podcast last week or so on mises.org, the banks are now holding excess reserves. The bailout package authorizes the Fed to start paying interest on bank reserves, and they have announced a plan to do so. If you look at the numbers, the banks lately have had around $40...

Posted to Economics Questions by econbuff on Mon, Oct 6 2008

From the mouth of a wolf in sheep's clothing

There's much to be said about the current financial crisis. At the heart of this, as every Austrian knows, is the fault the US government holds for creating the current situation through its central bank and its inflationary policy. This fundamental economic truth cannot be stated enough. Ignorance...

Posted to Apropos Austrian Aphorisms by thedo on Wed, Sep 24 2008
Filed under: ron paul, inflation, federal reserve, great depression, murray rothbard, financial crisis, central bank, henry paulson, america's great depression

Re: Why have a Central Bank?

Ron, You are quite right about both Rothschild's quote and your statement that Britain does not have a 100% reserve system. Private banks played an extremely important role in financing nations and issuing their currencies in the 19th Century, and the Rothschild's among others profited greatly...

Posted to Economics Questions by PhCrawford on Mon, Sep 15 2008

Inflation "Targeting"

What if the Fed set a goal for themselves to contain inflation at 3%? Let's assume (and this is a huge assumption) that government can control its spending to the point where 3% inflation is maintained. Is this the ticket to success? Well let's see: Artificial booms would still exist. Businessmen...

Posted to Love of Liberty by ChrisR on Mon, Jul 28 2008
Filed under: inflation, federal reserve

Re: When can the fed print more money?

See Rothbard's What Has Government Done to Our Money . When a regular person buys a government bond, that person is spending money they had to have somehow received beforehand from someone else. That is, it must have been money that was already in circulation. When the Federal Reserve buys government...

Posted to Economics Questions by hjmaiere on Sun, Apr 13 2008

Re: The minimum wage

> Without government intervention into the economy, can wages rise naturally? < Wages rise naturally after the floor is above subsistence. Disposable income is the key that allows labor to get specialized. As long as the vast majority of consumers have zero disposable income, there can be no healthy...

Posted to Economics Questions by Arman on Tue, Jan 29 2008