Money and Banking

If Europe wants to build wealth for its poorest members, it needs private entrepreneurship. But entrepreneurs need exactly the opposite of the Keynesian plan for building a European superstate. 

Rothbard recognized that money and exchange could not develop without first establishing private property. So Rothbard also recognized that it was important to develope theories of how private property might come about. 

Here's a likely reason the Fed has chosen to hide its data on government deposits: the explosion of Treasury deposits at the fed “fuels … suggestions that the Fed is directly financing the government [and] foster[s] uncertainty about central bank independence.”

Using the Mises’s regression theorem, we can infer that it is not possible that money could have emerged because of a government decree as suggested by the modern monetary theory (MMT).

As soon as cash has been pushed back or stripped away entirely, monetary policymakers can implement an uninhibited negative interest rate policy to devalue debt. Customers can no longer get out of the “bank balance sheet”; the final escape door is then locked.

Murray Rothbard didn’t need to explain to me on the bus why East Berlin, the so-called Paris of Eastern Europe, was a broken-down dump. He already had explained it to me in his numerous writings.

As the money supply has skyrocketed, money has flooded into stocks, bonds, single-family housing, and crypto. But this doesn't translate into general prosperity for the countless unemployed and underemployed who face rising prices. 

As soon as cash has been pushed back or stripped away entirely, monetary policymakers can implement an uninhibited negative interest rate policy to devalue debt. Customers can no longer get out of the “bank balance sheet”; the final escape door is then locked. 

A growing number of fragile and deeply indebted enterprises have become more dependent on government bailouts, loans, subsidies, short-time working benefits, and loans from central banks. 

According to popular thinking, the sharp decline in money velocity since June 2008 is likely to neutralize recent strong money supply increases’ effect on price inflation ahead. This is a fallacy.