Manuel García Gojon



Articles by Manuel García Gojon

Argentina Sleepwalks into Hyperinflation (Yet Again)

A century ago, Argentina was one of the world’s wealthiest nations and the Argentine peso rivaled the dollar. Today, Argentina is famous for periodic hyperinflation.

Original Article: "Argentina Sleepwalks into Hyperinflation (Yet Again)"

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Argentina Sleepwalks into Hyperinflation (Yet Again)

The Argentine peso has lost half its value in one year. Both the official and parallel exchange rates with the US dollar and the Mexican peso have doubled in one year. Consumer prices have doubled in one year. The quantity of Argentine pesos has doubled in one year. All the rates at which these variables are increasing have also doubled in one year. Expecting everything to double again in half a year is now a conservative projection.
Argentina was the richest country in the world at the beginning of the twentieth century. It has now endured almost one hundred years of fiscal dominance, meaning that the central bank always accommodates whatever deficit the government decides to run. Argentina has been practicing modern monetary theory since before it was even a concept. Today more than half

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Charles Schwab and Other Big Banks May Be Secretly Insolvent

The taming of monetary policy necessary to slow price inflation has triggered a corrective trend in the valuation of financial instruments. Many big banks in the United States have substantially increased their use of an accounting technique that allows them to avoid marking certain assets at their current market value, instead using the face value in their balance sheet calculations. This accounting technique consists of announcing that they intend to hold such assets to maturity.
As of the end of 2022, the bank with the largest amount of assets marked as “held to maturity” relative to capital was Charles Schwab. Apart from being structured as a bank, Charles Schwab is a prominent stockbroker and owns TD Ameritrade, another prominent stockbroker. Charles Schwab had over $173 billion in

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Short-Term Market Volatility Is Not Entirely Random

Over the present year we have experienced record-breaking price inflation, a series of interest rate hikes, and an overall fall in stock prices. It is widely accepted that there is a bubble. A good way for Misesians to measure this is by comparing the price of capital (stock prices) to its replacement cost (book value). A normal ratio for the overall market should be close to one.

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