Tag Archives: Ludwig Von Mises

The Troika & The IMF


This week on Facebook: My innate cynicism tells me that that this exercise in flagellation by the International Money Fund (IMF) issuing their critical report¹, is not a pursuit of penance but rather a manipulation of the media. The Moving Finger writes; and, having writ, Moves on:… and so does the IMF. The media criticism of the IMF’s handling of crises mentioned in the report, especially the crisis in Greece and that of the Eurozone, will soon be forgotten as the media also moves on. The IMF will be left to continue dispensing its euphemistic aid regardless of its efficacy to those in receipt of it. Read more of this post

Beggars are coming to town.


The Tudor Age (1485 – 1603), especially during the reign of Henry VIII, was a period of great social upheaval. The Act of Supremacy coupled with the dissolution of the monasteries, the enclosures of common land and the great debasement, affected all strata of English society.  The wealth of English landowners vastly increased, as did the size of their farms and estates, but the effect on those not owning land and the hired labour, especially in rural communities, was catastrophic. Vagrancy became endemic as a largely self-sufficient, if often subsistent, rural culture effectively ended. The rural dispossessed swelled the bands of those regarded as idle vagabonds, who roamed the country plaguing all communities in England. Crime increased, as did the indigent population of English towns and cities. The punishments for vagrancy introduced after the Peasants Revolt of 1381, and meted out to the indigent considered to be deliberately indolent, were made even harsher. Read more of this post

Principles of Economics


Mankiw’s Ten Principles of Economics, Translated

by Yoram Bauman [1]
University of Washington, Seattle, Washington

The cornerstone of Harvard professor N. Gregory Mankiw’s introductory economics textbook,Principles of Economics, is a synthesis of economic thought into Ten Principles of Economics (listed in the first table below). A quick perusal of these will likely affirm the reader’s suspicions that synthesizing economic thought into Ten Principles is no easy task, and may even lead the reader to suspect that the subtlety and concision required are not to be found in the pen of N. Gregory Mankiw. Read more of this post

Cash is subversive


Commenting on the trend towards interventionist policies and assertive state action Detlev Schlichter said that this is now so obvious that  The Economist and the Financial Times talk of the trend towards ‘repression’ and ‘national capitalism’ in crisis management. Read more of this post

Euronomics


There is a view (especially in France) that the enemies of the Euro are the AS (Anglo-Saxons).  In my opinion this is not so.  I do not believe the AS are against the Euro but, in common with the Austrian School of Economics,  they are against its inherent flaws. As   points out in his article ‘The French Don’t Get It.  The French government just doesn’t seem to understand the real implications of the euro.   French officials apparently don’t recognize the importance of the fact that Britain is outside the eurozone, and therefore has its own currency, which means that there is no risk that Britain will default on its debt.  By contrast, the French government and the French central bank cannot create euros.  There is a second reason why the British situation is less risky than that of France. Britain can reduce its current-account deficit by causing the British pound to weaken relative to the dollar and the euro, which the French, again, cannot do without their own currency.  The eurozone fiscal deficits and current-account deficits are now the most obvious symptoms of the euro’s failure. But the credit crisis in Europe, and the weakness of eurozone banks, may be even more important. The persistent unemployment differentials within the eurozone are yet another reflection of the adverse effect of imposing a single currency and a single monetary policy on a heterogeneous group of countries.  These comments may be valid but in making the ‘French connection’, either Feldstein hasn’t been following recent European events very well, or he simply doesn’t understand the nature of the Anglo/French relationship, which is based on mutual distrust. Read more of this post

Inflationary money – ‘let it be done’ (fiat)


Owl was telling Kanga an Interesting Anecdote full of long words like Encyclopædia and Rhododendron to which Kanga wasn’t listening.

Unlike Owl I always have a problem spelling Tuesday – my shortcomings here saved by a spellchecker, google, and an intuitive notion that something doesn’t look right.  When extraordinarily large valuations are put on artifactsit simply doesn’t look right, especially when the artifact being purchased appears to be trivial, like a comic book.  But this of course misses the point, which is that the investment in artifacts can be a means of hoarding wealth.  This also means that large exchanges of money for artifacts has to take place.  However: regardless of the price that an artifact may sell for, in a world where the medium of currency exchange is fiat money, any sum of money becomes irrelevant.  With fiat money, there is no need for money to exist in a form that requires its physical exchange. The ability to buy a Renoir, Buggatti, Louis Quinz, or the first issue of the Superman comic, incurring large financial transactions, relates more to a credit rating than the actual ability to produce the money required. The first issue of the Superman comic sold recently for a record $2.16m and it’s highly unlikely that the buyer attended the sale with a suitcase full of money or even attended the sale at all, being able to make the purchase by telephone or some other electronic means. Read more of this post

A Universal Debt!


I posted the video below as I found its message quite appealing, given the censure being heaped on bankers and financiers. However, I found the solution offered to the hypothesis of ‘money as debt’ somewhat optimistic, for in whatever form money is regulated, politicians will attempt to manipulate the supply of money to service their own political agenda. I have always eschewed the conspiracy theorists, Illuminati, Bilderberg, Freemasons, et al, but perhaps what is most surprising about conspiracy theories, is their popularity. There is a wide, if somewhat sceptical, acceptance of the possibility of a conspiracy, balanced by a naïve belief that somehow protection from such conspiracies is inherent in a democracy.
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Quantitative Easing and a bankrupt state


Quantitative Easing is the method used by the UK government (past and present) to stimulate economic growth by injecting money electronically into the economy. The theory is that the sale of  British Government bonds (gilts) and high quality Corporate Bonds from private sector companies (banks, pension funds, insurance companies and non-financial institutions) provides this economic stimulus. Quantitative easing to finance the purchase of these bond sales injects money directly into companies (and into the government coffers) thus increasing their available capital. The theory being that this in turn allows the release of money into the general economy, which also stimulates growth. In selling gilts the government effectively promotes a legal Ponzi scheme. In buying gilts or Corporate Bonds with money electronically printed for that purpose, the government and the banks are effectively laundering that money. When the State spends more money than it receives in taxes and resorts to printing more money; to paraphrase  Frank Chodorov from Don’t buy Government Bonds, it is deliberately committing an act of bankruptcy.

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Those Bonded Buy Bonds


An article by Frank Chodorov with the title Don’t buy Government Bonds is republished by the Ludwig Von Mises Institute. The following is an abridged version of that article, the original having appeared in Out of Step: The Autobiography of an Individualist (1962), which was a collection of essays and the last of Frank Chodorov’s books published during his lifetime. You may, or may not, be relaxed about the Government issuing bonds, as may be your attitude to the issue of Eurobonds. In the latter case it is your government that is buying Eurobonds on your behalf and if you are a taxpayer you are bonded to buy these bonds. While Chodorov was writing specifically about the US National Debt and advising against the purchase of US Government bonds, his hypothesis is as relevant today and applicable to all government bonds and those states that issue them. Chodorov states that: –
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The Bulletin

This site was created for members and friends of My Telegraph blog site, but anyone is welcome to comment, and thereafter apply to become an author.

TCWG Short Stories

Join our monthly competition and share story ideas...

The Real Economy

Hello, I’m Ed Conway, Economics Editor of Sky News, and this is my website. Blogposts, stuff about my books and a little bit of music

Public Law for Everyone

Professor Mark Elliott

Bleda

Am I my Brothers keeper?

An Anthology of Short Stories

Selected by other writers

davidgoodwin935

The Short Stories of David Goodwin (Capucin)

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