Money and Banking

Mises declared in 1951: “No boom is possible without credit expansion... the boom which causes the following depression could not occur if the banks did not expand credit."

Ignoring time preference is the fundamental error behind monetary planning. It is why in a successful economy, monetary intervention by the state is kept to a bare minimum, or preferably banished altogether.

Contrary to popular thinking, the velocity of money does not have a life of its own.

Monetary policy has gone from being a tool to support fiscal reforms to an excuse for not implementing them.

"Digital cash" is the latest terrible idea from those who want to give central banks more power to meddle in the economy.

Deflation is not a matter of animal spirits or consumer expectations. It is the result of earlier creation of money "out of thin air" by central banks and commerical banks. Deflation is the natural result.

Central Banks and the fiat reserve dollar hegemony won’t cede their power to cryptocurrencies easily,  and they're now resorting to a return to precious metals to stave off the threat of individual monetary sovereignty, Bitcoin, and the digital revolution.  

Central banks' economic models repeatedly and incessantly over-estimate economic growth. We can only speculate as to their motivation.

Jerome Powell has lost his faith in a new surge in economic growth. So, it's back to endless stimulus to keep the current cycle going.

The "subsistence fund" — created by real savings — is the foundation of true economic growth. But it can be eroded and destroyed by creating money "out of thin air."