Booms and Busts

While much of the media remains focused on Trump and trade, the greatest threat to the Chinese economy may be reckoning with a massive financial bubble from within.

The main indicators of the economic cycle point to a possible crisis and recession in the US economy. and maybe also in Europe.

The negative consequences of expansionary monetary policies take a while to show up, but Deutsche Bank's collapse may be the first sign of failure. 

Even if business people learn to expect easy-money caused bubbles and busts — this would still not prevent the formation of a boom-bust cycle. 

Presented at Mises University 2019.

Inflation can always give only a temporary fillip to the economy, and will leave us with a legacy of postponed adjustments and new maladjustments which make our problem more difficult.

The “boom-bust” cycle is generated by monetary intervention in the market, specifically bank credit expansion to business. 

The world now has the impossible choice of permanently reduced productivity and slower economic growth — or the mass bankruptcy of a significant percentage of the economy.

In much of America, the New Deal was run by a small number of very powerful political bosses.

Vikram Mansharamani’s second edition of Boombustology: Spotting Financial Bubbles Before They Burst has all the great insights from the first edition plus a foreword by James Grant.