The recent outbreak of price inflation with the jump to an annual rate of 8.6 percent in May 2022 came as a surprise to the US central bank (the Federal Reserve). Having ignored the warnings of the Austrian school economists, the policy makers were paralyzed in the face of a phenomenon they deemed impossible to happen. None of their forecasting models had triggered an inflation alert.

Russians are “eschatologically chosen.” They must stand against the false faith, the pseudoreligion of Western liberalism and the spread of its evil: modernity, scientism, postmodernity, and the new world order. This is the thesis of Aleksandr Dugin, the prominent Russian philosopher, and a mentor of the Russian president Vladimir Putin.

Money velocity’s role in forcing up prices is misunderstood because today’s monetary "authorities" fail to consider how new money is injected into the economy.

Too much government spending and loose monetary policy lead to rising prices combined with falling economic growth rates. All Keynesian roads lead to stagflation. It is the result of economic mismanagement. Again and again, the belief has been proven wrong that central bankers could guarantee the so-called price stability and that fiscal policy could prevent economic downturns.

A monetary system that allows the creation of money out of thin air is vulnerable to the fits of credit expansion and credit contraction. Periods of credit expansion typically occur over many years and even decades while the phases of credit contraction happen like sudden implosions. The monetary policy makers tend to promote the prolongation of credit expansion because they fear deflation.

Ein staatliches Fiat-Währungssystem mit einer nur teilweisen Deckung des Geldumlaufs durch die Bankreserven macht es möglich, dass die Geschäftsbanken mehr Geld als in Umlauf bringen als sie an Bargeld halten. Das sogenannte Giralgeld wird als Bankeinlagen gleichsam aus dem Nichts geschaffen.

Über „die Inflation” wird viel Irreführendes geredet. Von Politikern, Zeitkommentatoren und selbst von manchen Ökonomen. Schon die am meisten verbreitete Definition ist falsch. So heißt es, „Inflation” sei ein anhaltender Anstieg der Preise. Weiterhin wird behauptet, dieser Anstieg ließe sich messen und demnach ergebe sich das „Preisniveau” und die „Inflationsrate”.

Hat die ukrainische Krise eine Lösung, und wenn ja, welche könnte es sein? Welcher Vorschlag käme von Mises?

This second part of the series about the Principles of Economics treats Menger’s exposition of the economy. In continuation of the first part, which covered the general concept of goods, the part on the economy treats the role of economic goods in relation to human wants.

Das Weltwirtschaftsforum (WEF) wurde vor fünfzig Jahren gegründet. Es hat im Laufe der Jahrzehnte immer mehr an Bedeutung gewonnen und ist zu einer Plattform für futuristisches Denken und Planen geworden. Als Treffpunkt der globalen Elite bringt das WEF die führenden Persönlichkeiten aus Wirtschaft und Politik sowie einige wenige ausgewählte Intellektuelle zusammen.

Klaus Schwab of the World Economic Forum has big plans for a "sustainable" future. Most of it involves the destruction of markets and basic human rights.

The United Nations has been the key institution in setting the stage for a global “Great Reset” devoted to global management of human society and of markets.

About twenty-four hundred years ago, the Greek philosopher Plato came up with the idea constructing the state and society according to an elaborate plan. Plato wanted “wise men” (philosophers) at the helm of the government, but he made it also clear that his kind of state would need a transformation of the humans.

The world is currently in the midst of a newly aggressive drive to bring about a new socialist order through a powerful and "efficient" technocratic state. This new order has been labeled as "progressive," but it is merely the latest version of the socialist impulse which we have seen before in the form of socialism and communism. 

In his Man, Economy, and State, Murray N. Rothbard investigates not only the role of the capitalist but also that of the entrepreneur in a market economy. Rothbard uses the theoretical concept of the evenly rotating economy (ERE) to compare the role of the capitalist to that of the entrepreneur. Entrepreneurs earn profits in so far as they successfully correct the maladjustments in the real economy and move it closer to the ERE without ever attaining that state.

However high the death rate of the COVID-19 coronavirus becomes, the governmental response to the threat will be even more dangerous. If the current blockade of economic life continues, more people will die from the countermeasures than from the virus itself. In a short time, the basic supply of everyday goods will be at risk. By interrupting the global transport and supply chains, important medicines will be missing and food supplies will be insufficient.

André de Godoy: Ludwig von Mises mentions in his books that credit expansion is one of the causes of the inflation beyond the monetary expansion. What are the similarities and differences between those two phenomena?