Government failure was being felt everywhere this week, from the massive law-enforcement failure in Sen Bernardino to the crumbling economy in Brazil. Meanwhile, government tells us it only needs a little more money, power, and time to solve all problems.
Fractional-reserve banking systems create money out of thin air, and this causes malinvestments into less valuable and less productive activities. Eventually, banks realize there's trouble ahead, so they cut back on loans which leads to deflation and crisis.
The continuing power of the US dollar was called into question this week as the International Monetary Fund added the Chinese yuan as a part of the IMF's "currency" known as Special Drawing Rights. What does this mean for the US and China?
The 'good' news this holiday season comes from the IMF, as the Fund decided yesterday to include the yuan in the basket of currencies which underpins its Special Drawing Rights (SDR).
Republicans and conservative think tanks are apparently convinced that the key to improving the Federal Reserve is to create a "rules-based" monetary policy. But, as is so often the case with economics, things are much more complicated than they seem.
The aim of the article is to refine the Austrian business cycle theory by discussing the effect of changes in banks’ asset structure on the business cycle.
Free Fed money has led to an unprecedented corporate credit binge of excess spending, especially on share buybacks.
There were many state and local elections in the US this week, but few of them will result in anything that will combat widely held and popular errors about central banking, drug prohibition, and the global environment.
Given the current state of the economy, the Fed appears quite unlikely to raise interest rates any time soon. But what will it do if the economy starts to really go south?
Historically, reserve currencies have arisen without the help of the IMF, but we’re now witnessing a situation in which the IMF may declare the Chinese yuan a “reserve currency” as part of a larger game by global elites to manipulate global exchange rates.
