Category Archive: Austrian Economics

Eugen von Böhm Bawerk
“Value does not come out of the workshop, but out of the wants that goods satisfy” The quote by Mr Eugen von Böhm-Bawerk is as true today as it was more than 100 years ago, even though modern pundits often ignore the simple fact. This blog is not an attempt to revive Mr Böhm-Bawerks thoughts, life and deeds, but from a sober view of the world comment on and analyze ongoing events. We aim to take the analysis a step further. We question accepted truths and always strive to answer the simple question “why?” We are opinionated.

Central Banks Have a $13 Trillion Problem

GUALFIN, ARGENTINA – The Dow was down 118 points on Wednesday. It should have been down a lot more. Of course, markets know more than we do. And maybe this market knows something that makes sense of these high prices. What we see are reasons to sell,...

Simple Math of Bank Horse-Puckey

We stepped out on our front stoop Wednesday morning and paused to take it all in. The sky was at its darkest hour just before dawn. The air was crisp. There was a soft coastal fog. The faint light of several stars that likely burned out millennia ago...

On the Commemoration of World War I: From Woodrow Wilson to Donald Trump

It is altogether fitting that the US attack on a Syrian airport, the dropping of a MOAB on defenseless Afghanistan, and the potential outbreak of nuclear war with North Korea have all come in the very month in which an American president led the nation...

India – Is Kashmir Gone?

Everything Gets Worse (Part XII) – Pakistan vs. India After 70 years of so-called independence, one has to be a professional victim not to look within oneself for the reasons for starvation, unnatural deaths, utter backwardness, drudgery, disease,...

French Election – Bad Dream Intrusion

The French presidential election was temporarily relegated to the back-pages following the US strike on Syria, but a few days ago, the Economist Magazine returned to the topic, noting that a potential “nightmare option” has suddenly come into view. In...

Hell To Pay

Economic nonsense comes a dime a dozen. For example, Federal Reserve Chair Janet Yellen “think(s) we have a healthy economy now.” She even told the University of Michigan’s Ford School of Public Policy so earlier this week. Does she know what she’s...

The Cost of a Trump Presidency

Last Thursday’s wanton attack on a Syrian air field by the US and its bellicose actions toward North Korea have brought the real cost of candidate Trump’s landslide victory last November to the forefront. Unlike most laymen, accountants, and financial...

The American Empire and Economic Collapse

Despite widespread optimism among libertarians, classical liberals, non-interventionists, progressive peaceniks and everybody else opposed to the US Empire that some of its murderous reins may finally be pulled in with the election of Donald Trump, it...

LIBOR Pains

If one searches for news on LIBOR (=London Interbank Offered Rate, i.e., the rate at which banks lend dollars to each other in the euro-dollar market), they are currently dominated by Deutsche Bank getting slapped with a total fine of $775 million for...

Price Inflation – The Ultimate Contrarian Bet

If there is one thing apparently no-one believes to be possible, it is a resurgence of consumer price inflation. Actually, we are not expecting it to happen either. If one compares various “inflation” data published by the government, it seems clear...

March to Default

“May you live in interesting times,” says the ancient Chinese curse. No doubt about it, we live in interesting times. Hardly a day goes by that we’re not aghast and astounded by a series of grotesque caricatures of the world as at devolves towards...

“People Need to Understand that their Biggest Asset is Individual Liberty” – an Interview with Claudio Grass

As election season is upon us in Europe and political and economic tensions are heating up, Claudio Grass notes that “the euro is the most artificial currency in history”, highlighting one of the most fundamental problems at the heart of the EU’s...

Welcome to Totalitarian America, President Trump!

If there had been any doubt that the land of the free and home of the brave is now a totalitarian society, the revelations that its Chief Executive Officer has been spied upon while campaigning for that office and during his brief tenure as president...

The Long Run Economics of Debt Based Stimulus

Something both unwanted and unexpected has tormented western economies in the 21st century. Gross domestic product (GDP) has moderated onward while government debt has spiked upward. Orthodox economists continue to be flummoxed by what has transpired.

Boosting Stock Market Returns With A Simple Trick

Trading methods based on statistics represent an unusual approach for many investors. Evaluation of a security’s fundamental merits is not of concern, even though it can of course be done additionally. Rather, the only important criterion consists of...

Speculative Blow-Offs in Stock Markets – Part 2

As noted in Part 1, historically, blow-patterns in stock markets share many characteristics. One of them is a shifting monetary backdrop, which becomes more hostile just as prices begin to rise at an accelerated pace, the other is the psychological...

Speculative Blow-Offs in Stock Markets – Part 1

Why is the stock market seemingly so utterly oblivious to the potential dangers and in some respects quite obvious fundamental problems the global economy faces? Why in particular does this happen at a time when valuations are already extremely...

The Big Myth

Don Watkins of the Ayn Rand Institute wrote an article, The Myth of Banking Deregulation, to debunk a lie. The lie is that bank regulation is good. That it helped stabilize the economy in the 1930’s. And that deregulation at the end of the century...

Farewell, Welfare State

The tweet was never sent and never received: “Lying Otto von Bismarck set us up for bankruptcy! What was he thinking? Sad!!” Instead, Mr. Trump said last weekend that, far from trying to curb the promises and cut the costs of the welfare state, he was...

Is an Inflation Comeback in the Works?

LOVINGSTON, VIRGINIA – Amid all the sound and fury of the Trump news cycle, hardly anyone noticed. There is a specter haunting this economy. It is the specter of inflation…
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