An explanation for the downfall of MF Global Complete article here . That is why this system has to change at some point. It is exactly designed to be misleading, and the reason is so very simple. In any fractional system there will be a desire to amplify that fraction to the maximum degree. But in doing so, participants recognize that the process
This segment of “This American Life” is actually quite good and might be worth assigning to principle of economics classes as an introduction to the topic of money. They begin with “the most stoner question we have ever posed on this show” and they get all the way to including Ron
The American Economic Association recently held their annual conference in Denver. David Warsh reports that members were working on a variety of thorny issues, like what caused the economic crisis, how to prevent future crises, and even what to name the current crisis. No solutions are yet available. On a promising note, he reports that there
It is not a big stretch of the imagination that Europe is facing an economic crisis. Even optimists admit that there is some potential for a crisis to develop. However, my skyscraper model has issued a crisis signal. The signal comes in the form of the Shard , now the tallest building in Europe. The skyscraper model holds that when there is a new
The United States government has just crossed the magic line where its total national debt now exceeds (more than 100%) of GDP. See here that the U.S. national debt of $15.033 trillion is now higher than the $15.032 trillion gross domestic product. The magic line usually means that a country is plunging into a long term malaise. There are other
Here is a good example of a malinvestment. Its the Sathorn Unique skyscraper from Thailand which was to be one of the biggest building in the country until the 1997 Asian Financial Crisis hit. Regulations in most countries require that the contractor finish the structure or at least make it look like it is finished. Not here in Thailand. I guess
Dateline: Auburn, Alabama: The Economist tries here to summarize the battle that is going on in modern macroeconomics including Ron Paul, the Austrians, the Free Bankers, Paul Krugman, Keynes and one of my undergraduate professors Scott Sumner. It needs some extensive Austrian analysis and
Here is a link to an interview of James Grant and James Rickards on the return to the gold standard. I love the response line to the bogey about returning to the gold standard is going backwards. Rickards responds that if you are headed in the direction of going over a cliff, than going backwards is a good thing. ht:
The movie is good. Take a look at the trailer here . It seems like an accurate history of J. Edgar Hoover’s life, from what I know. He was clearly a fascist and a psychotic of various sorts. His use of drugs late in his life reminded me of Hitler. He was constantly plotting to get more money, power, and authority for the FBI. He was also
Paul Krugman is at it again . This time attacking Ron Paul and his Austrian economics (probably a very good sign). He claims that Ron is only consistent because he ignores reality. In fact, “reality” has only demonstrated the correctness of Ron’s views. His first attack is on the idea that paper money is the root of all economic policy evil. Well
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.