Monetary Theory

Narrated by Paul Strikwerda.

James Grant's testimony before the US House Committee on Financial Services. Here find the explanation of our monetary woes.

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.

Is it possible to both oppose Gaddafi and oppose a war on Gaddafi? Absolutely. This is a position that all Americans should adopt. In the same way, it is possible to oppose the Obama administration but also oppose having a foreign army oust him in order to liberate us.

Can the Fed gracefully exit from the huge hole it has dug for itself? Unfortunately my answer is no.

When the Civil War closed, the revenue acts that had been hastily passed during its course constituted a chaotic mass, writes F.W. Taussig.

In two recent blog posts on the varying economic fortunes of US states, Krugman's about-face was complete and fast.

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

In a wider historical perspective, the current currency war is the latest conflict in a series of acute crises of the modern international monetary system. In a world of national monetary regimes based on fiat money without physical anchors, domestic monetary instability automatically transforms into exchange-rate instability.

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.