Money and Banking

Thanks to politics, confirmation bias, and bad monetary economics, central banks have a lousy record when it comes to economic forecasts. 

The 1920s featured political détente, debt liquidations by prior consumer price inflation, an introductory stalling of monetary inflation, a German economic miracle, and a broad-based technological revolution. The 2020s have none of these.

The 1920s featured political détente, debt liquidations by prior consumer price inflation, an introductory stalling of monetary inflation, a German economic miracle, and a broad-based technological revolution. The 2020s have none of these. 

Let us begin with what CBDCs definitely are not: they are not a new kind of cryptocurrency akin to bitcoin.

Six hundred dollars, two thousand, or how about one million per person? How much money should a government give its people to get the wheels of commerce turning again?

The worst excuse of all is that “there is no inflation.” It’s like driving a car at 300 miles an hour on the highway, looking in the rearview mirror and saying, “we haven’t killed ourselves yet, accelerate.”

The French economist Jacques Rueff was the foremost opponent in the twentieth century of the gold exchange standard.  He well described how the Bretton Woods enabled the US government to engage in seemingly endless deficit spending. 

Corporate cost cutting sets the stage for future gains in profitability and productivity, and there is no resulting "paradox of thrift" requiring easy money policies to "fix" the problem. 

Let us begin with what CBDCs definitely are not: they are not a new kind of cryptocurrency akin to bitcoin.

Yes, it can happen here. Only a fool thinks otherwise.