Money and Banking

The only reason why the illusion that central authorities can grow an economy appears to be real is because of a still expanding pool of real savings.

Big banks like Deutsche Bank have the potential to take an entire economy hostage: When they get into trouble, they can drag everything down with them.

The EU’s precariousness will only be fully exposed by the next credit crisis and the ECB’s response to it, which will end up collapsing the euro.

The art of financial engineering – camouflaging a rise in leverage to boost present and future earnings – is in high demand.

Without saving and investment, there can be no material progress — which is necessary for cultural progress and flourishing.

Let us see what happens under inflation, and why it happens.

It's true that the Fed doesn't directly set a target for money creation. But by setting interest-rate targets, the Fed adopts a de facto policy of money creation. 

Has China blown the biggest credit bubble in history?

Creating money out of thin air always sets the boom-bust cycle in motion, even when there's an increase in the demand for money. 

The history of shadow banking development confirms Mises’s thesis that each government intervention leads to unintended consequences.