Booms and Busts

The negative consequences of expansionary monetary policies take a while to show up, but Deutsche Bank's collapse may be the first sign of failure. 

Even if business people learn to expect easy-money caused bubbles and busts — this would still not prevent the formation of a boom-bust cycle. 

Presented at Mises University 2019.

Inflation can always give only a temporary fillip to the economy, and will leave us with a legacy of postponed adjustments and new maladjustments which make our problem more difficult.

The “boom-bust” cycle is generated by monetary intervention in the market, specifically bank credit expansion to business. 

The world now has the impossible choice of permanently reduced productivity and slower economic growth — or the mass bankruptcy of a significant percentage of the economy.

In much of America, the New Deal was run by a small number of very powerful political bosses.

Vikram Mansharamani’s second edition of Boombustology: Spotting Financial Bubbles Before They Burst has all the great insights from the first edition plus a foreword by James Grant.

It is the lethal combination of tariffs and the end of the expansionary phase of the credit cycle which should concern us.

Unlike Greece, Italy or other seriously debt-laden economies, it’s not just government borrowing that’s the main risk to Turkey.