Business Cycles

Narrated by Paul Strikwerda.

Like many economic events, the key lies not in what is immediately apparent — explosively large banks — but in those causes and conditions that are veiled. Politicians, pundits, and the population of the Icelandic nation have had a difficult time explaining how such a large financial sector could develop in the first place.

A true expansion of wealth cannot  generate a general increase in prices.

The growth momentum of price indexes shows visible strengthening. Prepare for more. 

Higher food prices set off the revolutions in Tunisia and Egypt and the mass protests in countries like Algeria, Jordan, Yemen, Bahrain, and Iran. People in these countries buy more unprocessed foods and spend a much higher percentage of their income on food, so they have been severely impoverished by Bernanke's QE2.

If Bernanke has to choose between saving rich bankers or the dollar, I am confident he will choose the former. We have good reason to expect rising prices and no dramatic efforts to reverse course.

One aspect of the current economic crisis has been the comeuppance for certai

Any theory — including any of Paul Krugman's Keynesian models — that neglects the distortion of the capital structure during boom periods cannot possibly hope to accurately prescribe policy solutions after a crash.

We are now on our third (and counting?) attempt by the Keynesians (and their occasional Chicago School comrade, Sumner) to use statistics to beat the Austrian theory.

The theory of profit/interest has major implications for the understanding of capital accumulation, the determination of real wages and the general standard of living, taxation, inflation/deflation, and the business cycle.