Monetary Theory

Ultimately, the Keynesian's deficiency comes down to their lack of capital theory, which eventually leads them to believe in a very disjointed monetary theory.

Printing up money and lowering the value of all dollar-denominated assets while simultaneously benefiting political friends and accomplices is sure

"This myopic focus on 'price stability' made policymakers blind to other possible pitfalls, such as the surge in credit and the rapid growth in asset prices, and the concomitant misallocation of resources led on by distorted price signals."

Copernicus became the first person to set forth clearly the “quantity theory of money,” the theory that prices vary directly with the s

The true tragedy of a fiat money regime is that bogus economic growth by way of monetary and fiscal stimulus can go on only until either the collapse of hyperinflation brings an end to the artificial boom or the amount of accumulated debt makes state bankruptcy inevitable.

"An excessive quantity of money," he opined, "should be avoided."

The attempts to create a double standard of gold and silver failed lamentably.

With an inflationary or deflationary policy, a government does not promote the public welfare, the commonweal, or the interests of the whole nation

Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous.

It shouldn't come as a surprise if it eventually turns out that the real danger is, like so often in the past, inflation rather than default.