Falling Interest Causes Falling Profits
Most people assume that prices move as a result of changes in the money supply. Instead, let’s look at the effect of changes in…
Janet Yellen Fights the Tide of Falling Interest
On Wednesday Dec 16, Federal Reserve Chair Janet Yellen announced that the Fed was raising the federal funds rate by 25 basis points. Let’s…
A Free Market in Interest Rates
Unless you’re living under a rock, you know that we have an administered interest rate. This means that the bureaucrats at the Federal Reserve…
Will a GDP Futures Market Be Liquid?
At the Cato Monetary Conference this week, Scott Sumner said he had a “modest” proposal, that there should be a highly liquid futures market…
How Do People Destroy Their Capital?
I have written previously about the interest rate, which is falling under the planning of the Federal Reserve. The flip side of falling interest…
What’s Different about Monetary Policy?
Many people agree that it’s important to move to a free market in money (i.e. the gold standard). They also say that it’s just…
Jackson Hole: Cherry Flavored Cyanide, or Strawberry
The Federal Reserve puts on a conference in the idyllic location of Jackson Hole, Wyoming. Of course it’s all about how best to centrally…
Who the Heck Consumes His Capital?!
I have been writing about consumption of capital, using the example of a farmer who sells off his farm to buy groceries. It’s a…
The Economy is in Liquidation Mode
If you’re an American over a certain age, you remember roller skating rinks (I have no idea if it caught on in other countries)….
Yield Purchasing Power: $100M Today Matches $100K in 1979
I wrote a story about poor Clarence who retired in 1979, and even poorer Larry who retired last year. I created these characters to…