Booms and Busts

Much ink has been expended in discussions of the US yield curve and also on the reluctance of the country’s lower money aggregates to grow as

Contrary to the accepted way of thinking, recessions are not negative growth in GDP for at least two consecutive quarters.

Joseph T. Salerno (2003) argues economic growth has occurred in periods of deflation. The Austrian School’s broad understanding of deflation is underscored by the four definitions offered by Salerno.

Evidently, it was only after extensive knowledge was gained while training to be a mortgage loan officer and studying for a real estate sales license that the now former hairdresser realized borrowing 100 per cent of the sales price to buy real estate that generated a $5,000-plus negative cash flow each month created "a potential for serious financial hardship, such as foreclosure or personal bankruptcy if they could not make their mortgage payments."

The Fed is there to print all the money the federal government will need. There is no limit on its power to do so. We aren't taxed. For that reason, people are not scandalized by the numbers or the corruption. We don't even call it that. There is nothing about the numbers that seems real.

Economist Brad Setser (Director of Research, Roubini Globa

From the book For A New Liberty: The Libertarian Manifesto, as narrated by Jeff Riggenbach.

Published in Economica, November 1938.

Published in Economica, May 1940.