It is a huge mistake to call the repeating cycle of boom and bust a business cycle. That name implies the bust is the failure of markets and capitalism. But it is really due to monetary and credit inflation licensed and promoted by governments and central banks.
The $120,000 price tag on that artwork involving a banana taped to a wall had almost zero to do with the amount of labor or materials that went into it. Its value was based on subjective valuations specific to certain buyers.
Why does gold still matter? Politicians, central bankers, and investors dismiss it as a relic, but the precious metal still plays role in today's economy. Keith Weiner of Monetary Metals explains why.
The history of Latin America is filled with tragic stories of countries reaching great heights — Argentina and Venezuela come to mind — and then falling back to mediocrity. Chile could be next if the protesters get their way.
Easy-money policies pushed by central banks may be redirecting wealth away from investment, and toward greater production and consumption of cheap consumer goods. That's not "green."
