Central Banks

Bitcoin and gold are now playing the essential role that independent central banks should be enforcing. 

The mainstream economic belief is that a growing economy needs a growing money supply to ensure “price stability.” Austrian economists, however, believe that there is no “optimum” money supply, which means government should not engage in monetary expansion.

A free market economy does not generate jobs or money. Instead, it creates wealth through exchange and production. Government intervention, contrary to what mainstream economists believe, does not enhance wealth, but instead destroys it.

A free market economy does not generate jobs or money. Instead, it creates wealth through exchange and production. Government intervention, contrary to what mainstream economists believe, does not enhance wealth, but instead destroys it.

The central bank monetary shenanigans in both Europe and the US no longer can be ignored or covered up. Unfortunately, as their economies falter, the Fed and the European Central Bank will resort to even more financial trickery to cover for previous monetary foolishness.

According to Keynesian “economics,” central bank interest rate cuts will make the economy stronger—unless the economy is in a “liquidity trap.” The truth is that these kinds of monetary tricks actually weaken the economy.

American history classes typically teach that the original transcontinental railroad was a major triumph. What they don‘t say is that it was a product of corporate welfare that created economic problems later on.

Belief in the fairy tale known as Modern Monetary Theory not only is endemic in US academic and government circles, but is also making headway in Great Britain. We are being forced to learn all over again the lessons of inflation.

It seems that the EU leaders have decided on a new military spending spree. To pay for this, the EU will issue new war debt on top of its current high debt loads.

More than a century ago, Congress created the Federal Reserve System to intervene in the American economy. Not even the biggest critics of the central bank‘s formation could have predicted the economic disasters it brought about.