Money and Banks

In a new book, The Natural Order of Money, Roy Sebag argues that money is the "extension of the natural order," and that it is not arbitrary.

Few economists—even the free-market advocates—understand what caused the Great Depression. No, the Fed didn’t cause the Depression by failing to inflate the currency. Instead, it was the Fed’s inflation that led to the disastrous early events.

Central banks have had the chutzpah to claim credit for slowing down the rise of consumer prices. The truth is they have taken advantage of the supply boost from fading pandemic dislocations to pursue continued monetary inflation.

Few economists—even the free-market advocates—understand what caused the Great Depression. No, the Fed didn’t cause the Depression by failing to inflate the currency. Instead, it was the Fed’s inflation that led to the disastrous early events.

When governments go to war, the nation’s monetary system usually descends into the pit of inflation. The War of 1812 was no exception, and its monetary excesses led to the Panic of 1819.

In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.

Brent Johnson of Santiago Capital joins Bob for a friendly disagreement over the dynamics of a decline in foreign demand to hold USD.

When governments go to war, the nation’s monetary system usually descends into the pit of inflation. The War of 1812 was no exception, and its monetary excesses led to the Panic of 1819.

In a recent interview with 60 Minutes, Fed chairman Jerome Powell gave assurances that the US banking system is sound. Ben Bernanke also claimed almost twenty years ago that real estate markets were not overextended. The hubris must be in the water at the Eccles Building.

Central banks have had the chutzpah to claim credit for slowing down the rise of consumer prices. The truth is they have taken advantage of the supply boost from fading pandemic dislocations to pursue continued monetary inflation.