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Here's the original post: Increasing the money supply causes inflation? How can that be? Even though the FED may lower interest rates or engage in quantitative easing, thus encouraging banks to loan out money. When the bank loans this money, there still has to be an asset backing the newly created...
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Okay, I have been thinking this one through and I want all yous guys' thoughts. So the argument goes that until full employment is reached, newly printed money will not cause price inflation as new goods would be produced. Say, 100 people lay around not doing anything, then the government runs off...
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Fri. 12/06/22 18:31 EDT . post #179 Assuming "industrial production" is measured in terms of money, then one question is: Are the money numbers corrected for inflation, or not? If not, then how are we to know if actual production is increasing, or just the money numbers (reflecting continuously...
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Sat. 12/06/16 17:14 EDT . post #167 [quote user="EmbraceLiberty"] What is the process and how does it get in the hands of the rich first?[/quote]Also, check out this video: Fiat Money My (basic) understanding is this: The government borrows money, by selling Treasury Bills (T-Bills), in an...
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I'm currently reading Currency Wars by James Rickards. In it, he says that one way for a nation to boost its exports is to depreciate its currency by printing money. For example, let's say that the price of a German car is 20,000 marks or 20,000 US dollars. And let's say the exchange rate...
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Austrians blame the Great Depression on the inflation created by the Federal reserve during the 1920s and how that fueled the bussiness cycle. Milton Friedman blames it on the collapse of the money supply during the 1930s. Could both be right? It seems like the decline of the m3 money supply by one third...
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Hello all. This is my first post at the Mises Forum. In the last few month I've taken interest in Austrian economics. I'm just about fininshed with Robert Murphy's Lessons for the Young Economists . I've read Murphy's Politically Incorrect Guide to the Great Depression and the New...
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I just read this article http://mises.org/daily/4256 I understand most everything in it and it makes sense but I am stuck on one spot and it might just be my brain jumping around on too many other things. "By making Chinese goods cheaper through inflation, the People's Bank of China is effectively...
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Inflation acts as an indirect tax by transferring wealth to the printers of new money (central banks, government, etc). But if the capital gains tax isn't indexed to inflation, then doesn't that mean inflation acts as a direct tax too? In the sense that if inflation increases the nominal value...
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I heard a statement from Peter Schiff yesterday and I’m having some trouble thinking about it. The average Ford worker in Henry Ford’s era (1914) earned approximately $5 per day in wages – the equivalent of 1.25 ounces of gold per week. The average Ford worker today earns approximately...