Money and Banks

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Sound Money versus Fiat Money: Effects on the Boom-Bust Cycle

Money and Banks

Blog06/23/2021

An increase in the supply of money does not necessarily cause the boom-bust cycle. It is only when more money is created out of nothing that the cycle begins. 

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How Fiat Money Changes Culture

Money and Banks

Blog06/23/2021

The creation and enforcement of fiat money enables larger and more centralized government. Large government programs become possible that were not possible or sustainable under a market-chosen, sound money standard. 

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Central Banks See No Way out of the Low Interest Rate Trap

Money and Banks

The last time a major central bank knowingly tried to end a low-rate policy regime occurred in Japan in the late 1980s. Since then, no central banker has wanted to repeat this unhappy experience.

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With Reverse Repos, The Fed Is Now Trying to Clean up Its Own Mess

Money and Banks

Blog06/12/2021

One of the areas of the economy that the Fed recently needed to bail out was money market funds. Most investors consider these funds cash. One wonders why the Fed would be forced to provide liquidity to shore up liquidity.

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Why Monetary "Stimulus" Won't Prevent an Economic Bust

Money and Banks

Blog06/09/2021

If the Fed were to embark on aggressive monetary pumping to counter economic recession this will not produce the intended effect. It will only dilute the pool of real savings and make things worse.

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"Supply Bottlenecks" as an Excuse for Inflation

Money and Banks

Blog06/08/2021

First, money is aggressively printed with the excuse that “there is no inflation.” When inflation rises, central banks and governments tell us that it is “transitory” or due to “multicausal” effects.

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The Worst-Kept Secret in America: High Inflation Is Back

Money and Banks

Blog05/29/2021

From wood to copper to corn, prices for basic necessities for both production and consumption are rising to multiyear highs. The Fed says it has everything under control, but the Fed has a terrible track record in both predictions and executing its plans. 

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Let's Level the Playing Field between the Dollar and Competing Currencies

Money and Banks

Blog05/19/2021

Thanks to so many government restrictions on the use of potential monies that aren’t the dollar, we can only guess as to what the relationship between dollars and bitcoin would be in a functioning marketplace. But it doesn't have to be that way.

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Why Fungibility Is Important in Understanding Money and Crypto

Money and Banks

Blog05/12/2021

One of the most in-demand aspects of physical cash is that it is totally fungible. Every dollar is the same as every dollar. But cryptocurrencies can leave a digital trail which may lead to later problems in fungibility. 

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The Fed Embraces Its Inner Zimbabwean

Money and Banks

Blog05/06/2021

With Jerome Powell and Janet Yellen focusing on using monetary policy to manage climate change, the M1 money supply has gone parabolic, from just over $4 trillion in February to $18.6 trillion in March. This is right out of Zimbabwe's playbook.

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