Bank bailouts, homeowner bailouts, auto-industry bailouts, and now massive stimulus packages; the federal government spending list goes on and on. Goldman Sachs projects the federal deficit for this fiscal year to be as high as $2.5 trillion. That’s 5.5 times the fiscal 2007 federal deficit and 1.5 times gross US savings. A $2.5 trillion deficit
All economists, whether they are of an Austrian, a Keynesian, or a monetarist bent, as well as nearly every investor, would agree that money plays a vitally important role in the economy. And a correct measure of its supply is an indispensable input into every economic and financial forecast. How could it not be? Money is one half of every
[An earlier version of this article appeared on Forbes.com, April 27, 2012.] To Austrians, all economic “booms” founded on monetary largesse always end in economic busts, roughly equal in size and intensity to the preceding booms. By distorting interest-rate and price signals and, as a consequence, creating malinvestments that must eventually be
The latest commentary from Richard Russell of Dow Theory (October 22) says the conventional wisdom is that the Fed will not let anything bad happen to the markets before the election in 2004. In his view, however, the conventional wisdom is worthless as regards market timing. The smart bunch will aways move ahead of everyone else, and Russell
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.
