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First of all there are many misinterpretations about what fractional reserve banking actually is. So lets being with sorting out some of our terminology. A lot of people claim fractional reserve banking isn't fraudulent because everyone can agree on it. Well that is just the thing, they can't...
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http://libertyisnow.blogspot.com/2010/04/is-deflation-better.html Subscribe by Email Is Deflation Better? by Alex Merced I constantly speak about the dangers of inflation (increase in the money supply), and inflationary pressures of a growing government. Inflation destroys our purchasing power, causes...
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Alex Merced
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Wed, Apr 7 2010
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Filed under: Money, Prices, Economics, Price levels, Money Supply, Arbritage, Investment, Taxation, Risk, Banking, Treasuries, Inflation
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http://libertyisnow.blogspot.com/2010/04/treasuries-investment-interest-rates.html Subscribe by email Treasuries, Investment, Interest Rates, and Risk by Alex Merced In todays world investment revolves around US Treasury debt cause it's AAA rating. Since the return yielded from treasuries is considered...
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If a bank uses reserve money to base its credit expansion on, and they daily borrow/loan reserves to other banks to make their reserve requirements, then the argument that they have increased reserves now due to Fed bank balance sheet increase and they are not loaning these reserves out is nonsense....
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Washington Cesspool By Monty Pelerin , posted February 18th, 2010 http://www.economicnoise.com/2010/02/18/washington-cesspool/ Image via Wikipedia Nothing has changed in Washington as evidenced by the Reuters article below. The government is still run by the banking industry. What happened to the good...
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Obama’s Keystone Cop Regime By Monty Pelerin , posted December 18th, 2009 http://www.economicnoise.com/2009/12/18/obamas-keystone-cop-regime/ Obey The King or The Law? The current economic crisis had its own unique economic and financial aspects. The political response did not. Politicians initially...
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The (usually) transparent process of inter-bank lending works so well that most of the time we don't even think about it. This process has largely weaned the public away from physical paper money. Note that most money (about 90%) now exists only as entries on bank ledgers, backed by loans (debt)...
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I commented last week on a blog post by leftist Aussie economist John Quiggin , who blamed the financial collapse on investment banks, and suggested that either: (i) investment banking should be much more heavily regulated ("Properly done, regulation of this kind would kill off investment banking...
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It's been several weeks since receiving a complementary copy of Larry Sechrest's Free Banking to live blog about, and high time to get started on the task. A few preliminary notes: my main task in this venture is to gain a greater understanding of the Rothbardian charge against fractional reserve...
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Speaking at the Asia-Europe summit Chinese Premier Wen Jiabao recently said , “The biggest responsibility is to stabilise the financial order as soon as possible. We need to use all available tools to prevent the crisis from harming real economies.” The Premier's comment is hardly in...
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In my previous post I spoke about the role of interest rates in balancing the supply of real savings (from depositors) and demand for those savings on the part of borrowers (investors): What's difficult to grasp here is that savings are not just abstract dollar notes. When I save, I am implicitly...
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It was Albert Einstein who stated that the definition of insanity is "doing the same thing over and over again and expecting different results." After the FED's cutting of interest rates by three-quarters of a point today , those of us wary toward centralized banking and the socialization...