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Economists of the Austrian School understand that monetary expansion has the effect of making things more expensive than they otherwise would have been. At the root of the real-estate bubble was Federal Reserve monetary expansion funneled into the purchase of mortgages by Fannie Mae, Freddie Mac, and...
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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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Hello Im economy student (Prague), and during last few months I read some things about austrian economics. I like it, and Im trying to present this view to my friends whenever discussion about economy occurs. I had a discussion with a friend about inflation vs deflation, where i was a devils advocate...
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There is also a counterfactual problem. If the money supply were to increase by 10% in one year, while the CPI remained at 0% the same time period, this does not necessarily mean a lack of correlation. For all we know, in an alternate history, if the money supply remained unchanged at 0%, the CPI would...
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I just want to check if my understanding of the reserve requirement is accurate. When the Fed buys an asset from banks or government debt it creates however much money in the form of reserves. So the money supply should be potentially inflated by 10 times the Fed's purchase because of fractional...
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http://www.economagic.com/em-cgi/charter.exe/fedstl/m1sl this link shows a chart that indicates that m1, since 1990, has about doubled. about a 5% increase per year. i understand m1 to be the AMB plus (as AMB, currency iow, makes its way through the banking system) 'fiduciary media'. many posts...
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Here's a story I just wrote to help explain what the Fed's doing to wreck our economy. Please let me know if it helps. Normal 0 false false false MicrosoftInternetExplorer4 The Three Little Pigs and the Federal Reserve Crisis In their later years, they bought a yacht and sailed the seven seas...
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Does anyone have any data on precisely how much the money supply has been and is going to be increased by the recent bailouts and the lowered fed funds rate? People are talking about the "unprecedented injection of liquidity" and so forth, but I am curious as to whether this increase is in...
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Ron, You are quite right about both Rothschild's quote and your statement that Britain does not have a 100% reserve system. Private banks played an extremely important role in financing nations and issuing their currencies in the 19th Century, and the Rothschild's among others profited greatly...
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There is a large case against the Fed, it's excess credit creation has led to bubbles, they burst, which lead us to painful times. My question is this the same case for Britain and the Bank of England? Our property bubble has been massive and has started to pop, I'm not actually sure if it's...