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Numerous times the too big to fail argument has been advanced. It has been said that various bailout's are necessary to prevent some party from becoming insolvent, otherwise given the interconnectedness of the world economy, everything may fall apart and there could be a worldwide depression. I even read someone who said the US must assist in the
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On another forum someone asked, in the context of a gold money system: "deflation question: why would I buy inputs for 1lb of gold if by the time I sell the output I’ll get paid only half of it?" The idea being that deflation causes people to prefer spending leisure time rather than production. Of course, there is the consideration of
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Thanks to all for the prompt and extensive answers to my question.
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On another forum I encountered this argument: Free marketers always claim the “bust” and other problems of capitalism have their root cause in gov’t intervention. However, the most intense periods of gov’t intervention in the market occurred in the post WWII Bretton Woods era which also coincided with the most stable era in modern
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Thanks for your reply Gerald, I agree the government is very much to blame for the loss of domestic industry in the US.
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[quote user="xahrx"] There is no such thing as "American Jobs" because jobs are not something that are owned. [/quote] What you say is true. Nevertheless, consumers on a daily basis elect those who will provide the goods and services he purchases. Consumers purchase from competing sellers who may be either domestic or foreign. Their
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Finally found an answer to my original question. I think a stronger argument could be made, but this is sufficient. http://www.econlib.org/library/Columns/y2008/Selicklocal.html
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[quote user="Esuric"] Opaque and overly complicated derivatives emerged precisely because of regulation. The first Basel accord placed ad hoc and restrictive regulations on the banking system, thus they created innovative and complex financial instruments. [/quote] I know little about derivatives, but I would like to learn more. Does anyone
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[quote user="DBratton"] Of course, she has it perfectly backwards. If we hadn't regulated the derivatives market no one would have had much confidence in it and it would have remained small, obscure, and the province of specialists. [/quote] What regulation do you mean? The point in the video was that over the counter derivatives were
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It appears you need to introduced the Austrian theory of the business cycle. The theory involves several concepts, and I'm not aware of a concise article that introduces all of the. When learning the theory myself, I found this article helpful. Be sure to follow the links within this article to several other related articles. Also, Rothbard's