Category Archive: 6b) Austrian Economics

Back to the Future: Progressives Imagine the Good Old Days of Price Controls

When the Bourbon dynasty was restored to power in France in the early 1800s after Napoleon’s abdication, the French statesman Charles-Maurice de Talleyrand famously said of that family: "They had learned nothing and forgotten nothing." In modern economic parlance, one can say the same thing about progressives, who once again are demanding price controls to "fight inflation."

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US Household Saving Rate Vanishes, Credit Card Debt Soars

The United States consumption figure seems robust. An 0.9 percent rise in personal spending in April looks good on paper, especially considering the challenges that the economy faces. This apparently strong figure is supporting an average consensus estimate for the second-quarter gross domestic product (GDP) of 3 percent, according to Blue Chip Financial Forecasts.

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Musical Chairs in Washington, D.C.

Republicans are licking their chops over the Federal Reserve’s ostensible plans to raise interest rates aggressively in the months ahead to combat soaring prices. They view a coming big recession as a grand opportunity to win control over Congress in the upcoming November elections. 

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The Great Crash of 2022

We are now well past the corona crisis of 2020, and most of the restrictions around the world have been repealed or loosened. However, the long-term consequences of arbitrary and destructive corona policies are still with us—in fact, we are now in the middle of the inevitable economic crisis.

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In Defense of Defaulting on the National Debt

With the acknowledged national debt now a politically and economically unpayable $30 trillion (in reality, its unfunded liabilities are far greater), Americans should start to become acclimated to the realities of the United States’ eventual, inevitable default.

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Juneteenth and Secular Holidays as Tool of the Regime

Last year Congress officially declared Juneteenth a federal holiday. While Very Serious talking heads attempted desperately to convince those that would listen that Juneteenth was a long-celebrated American holiday, the reality is that it was largely unknown around the nation prior to congressional action. The episode is a useful illustration of how the state weaponizes secular holidays to promote a larger cultural agenda.

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Die neue Zweiklassengesellschaft

Der Zweiklassengesellschaft kommt im sozialistischen Denken eine wichtige Funktion zu. Eingriffe in das Privateigentum bis hin zur kompletten Enteignung – gern auch als „Vergesellschaftung“ begrifflich verschleiert – erscheinen vor diesem Hintergrund in anderem Licht.

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How Money Printing Destroyed Argentina and Can Destroy Others

The most dangerous words in monetary policy and economics are “this time is different.” Argentine politicians’ big mistake is to believe that inflation is multicausal and that everything is solved with increasing doses of interventionism.

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Powell’s “Soft Landing” Is Impossible

After more than a decade of chained stimulus packages and extremely low rates, with trillions of dollars of monetary stimulus fueling elevated asset valuations and incentivizing an enormous leveraged bet on risk, the idea of a controlled explosion or a “soft landing” is impossible.

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Even after Admitting She Underestimated Inflation, Janet Yellen Still Doesn’t Understand What It Is

According to the June 1, 2022, Financial Times, Janet Yellen, the US Treasury secretary conceded she was wrong last year about the path inflation would take.

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On the Digital Future of Markets and Money

Thank you very much for the invitation. I am delighted to have the opportunity to share some thoughts with you on a topic I am very much interested in and that I believe is of the utmost importance to people around the globe—and that is “the digital future of markets and money.”

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No, It’s Not “Greed” or “Price Gouging” that’s Driving up Gas Prices

Both consumer prices and producer rose near to multi-decade highs last month. Price inflation rose to 8.6 percent while wholesale producer prices rose by more than 10 percent. In both cases, a significant factor behind rising prices—but certainly not the only factor—was high energy prices. This has been reflected in prices related to transportation and shipping.

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Unheeded warnings: Václav Klaus at the Marmara Forum

This not the first time that Václav Klaus’ astute observations and experience-based predictions turn out to be shockingly accurate years later, and I’m pretty confident it will not be the last. Even before the examples that follow and that he clearly laid out in his address at the Marmara Forum, the former President of the Czech Republic has repeatedly proven to be quite prophetic in his assessment of the future.  From his critique and his...

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The Inverted Yield Curve and Recession

The “yield curve” refers to a graph showing the relationship between the maturity length of bonds—such as one month, three months, one year, five years, twenty years, etc.—plotted on the x axis, and the yield (or interest rate) plotted on the y axis.1

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The Great Reset: Turning Back the Clock on Civilization

The covid-19 pandemic featured an unprecedented fusion of the interests of large and powerful corporations with the power of the state. Democratically elected politicians in many countries failed to represent the interests of their own citizens and uphold their own constitutions and charters of rights.

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Bribe Money for Ukrainian Officials?

In my blog post of May 18, 2022, I raised the possibility that the $40 billion aid package that Congress quickly approved for Ukraine was going to be used, at least in part, to pay multimillion dollar bribes to Ukrainian officials.

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Even When There Is Inflation, the Fed STILL Fights Falling Prices

Under any remotely sound money regime the aftermath of war and/or pandemic is highly likely to feature a sharp decline in the prices of goods and services on average. Even under unsound money regimes there are powerful forces operating towards lower prices once the war/pandemic recedes. Strong injections of monetary inflation, however, can overpower them.

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Klimamassnahmen: Verletzung elementarer Rechtsprinzipien

Die Klimapolitik basiert nicht auf solider Wissenschaft und bricht mit elementaren juristischen Grundsätzen. Weltweit greifen Staaten immer massiver in Freiheitsrechte ein, um den Klimawandel zu bekämpfen.

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Slowing Money-Supply Growth in 2022 Points to Recession

Money supply growth fell slightly in April, falling below March's eight month high. Even with March's bump in growth, though, money supply growth remains far below the unprecedented highs experienced during much of the past two years.

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A crack-up boom in the making

The great Ludwig von Mises first described the concept of a crack-up boom as part of the Austrian business cycle theory, based on real life events that to an unsuspecting bystander might have appeared unconnected, or perhaps even quite bizarre and counterintuitive. Indeed, such a bystander might think the same of today’s economy and would likely have trouble making sense of the picture painted by stock markets, by our monetary and fiscal policies...

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