Money and Banking

The only way to end the booms and busts brought by inflationary credit is to eliminate the central bank's counterfeiting that constitutes and creates that inflation.

Increases in the money supply need not always be followed by general increases in prices, as prices are determined by both real and monetary factors.

The idea that money must grow in order to sustain economic growth gives the impression that money somehow sustains economic activity. But this has never been true.

Decades ago, the Chinese state began to accumulate gold merely as part of a makeshift backup plan. But it may have ended up with enough gold to make a real move away from fiat currency, which would be a disaster for its Western competitors.

The future of Venezuela is grim. International reserves will be depleted, monetary expansion will not pay the deficit, and inflation will continue.

As the foundation of the economy weakens, bank lending weakens also. And then money begins to disappear from the banking system.

The next crisis is not likely to be another Lehman, but another Japan — a widespread zombification of global economies.

Government spending distorts and harms the wealth creation process. And cutting taxes without cutting spending won't lead to real economic growth.

In this 33-minute talk Joseph Salerno discusses the right way to define inflation, and how it impacts both economic prosperity and culture.

Now untethered from everything except the will of central bankers, international exchange rates  are especially prone to manipulation worldwide.