Mises Wire

Contrary to Fed assumptions, we are not presently facing a problem of liquidity vis-à-vis Great Recession; we are confronted, instead, with a serious shortage of quality collateral.

Whatever happens with the virus, the real story, the real historical change, is probably economic. Abenomics—Japan's ultra-Keynesian experiment—seems to be dead.

The truth is that you and I need goods and services to live, not electronically printed dollars.

Over eighty years ago, Keynes condemned the rentier and welcomed his future disappearance. Following in his footsteps, politicians and central bankers today are ever closer to effectively bringing this about.

Real higher wages can't be created with a government fiat. Worker productivity must first be increased through greater investment.

Egalitarians think that equality has intrinsic value: they advocate it for its own sake, not just to forestall bad consequences. But why is a situation in which some in it have been made better off, and none worse off, worse than one of equality?

The popular narrative is that demographics are driving Japan's declining worker productivity. But the real culprit is government regulations and a lack of entrepreneurship.

With each passing recession, the Fed finds it harder to refuel the last bubble, but the market moves on to the new bubble as the Fed keeps interest rates artificially low.

Bureaucrats cannot conjure wealth from nothing. They only have what they extract from the private sector. Unfortunately, the bureaucrats are now starving the private sector of funding while making government budgets ever larger.

Central banks have created a brittle economy without real savings and without much room to maneuver. Central banks now want more of the same in a bid to fix what they broke.