Negative Interest Rates are the Price We Pay for De-Civilization
The destruction of capital, economic and otherwise, is contrary to every human impulse.
The destruction of capital, economic and otherwise, is contrary to every human impulse.
The length, scale, and scope of such downturns are greatly expanded under a system of fiat credit expansion.
The fundamental error of the interventionists is that they ignore the shortage of capital goods.
To understand what an inverted yield curve means, you must first understand what the yield curve is.
Bob Murphy discusses the Mises-Hayek theory of the boom-bust cycle, and explains the predictive power of an "inverted yield curve".
Bob shows why Ludwig von Mises thought any issuance of fiduciary media caused the boom-bust cycle.
The negative consequences of expansionary monetary policies take a while to show up, but Deutsche Bank's collapse may be the first sign of failure.
Even if business people learn to expect easy-money caused bubbles and busts — this would still not prevent the formation of a boom-bust cycle.