Like taxation, government spending diverts resources from real wealth-generating ventures. Borrowed funds for continued spending must also be repaid, so current spending translates to future taxation.
Dr. Salerno discusses his intellectual roots and scholarly work, as well as his funny adventures with Murray Rothbard.
Regardless of expectations, tampering with the economy by means of monetary policies will always undermine the foundations of the real economy.
One of the easiest ways of asserting control over the private sector is to manage the money supply with a central bank. Naturally, Marx was rather fond of the idea.
When we blame the euro for Europe's ills, we're letting politicians and central bankers — who have only ever viewed the euro as a stepping-stone toward their grand objectives — off the hook.
Japan's Shinzo Abe has turned to Europe in hopes of stabilizing Japan's fiscal and and monetary situation. But Europe is a shaky foundation on which to build anything.
"The main thing is that the government should no longer be in a position to increase the quantity of money in circulation and the amount of checkbook money not fully — that is, 100 percent — covered by deposits paid in by the public."
100 years ago, coordination among central banks was engineered to speed up the renunciation of the gold standard, and greatly enlarge the freedom of all central banks to inflate money supplies.
There is no such a thing as insufficient demand as such. An individual’s demand is constrained by his or her ability to produce goods.
Hayek was right when he said if we want to maintain a free society, we have to take the money monopoly away from the government.
