link: http://ift.tt/1qTv7iN
Hot And Trending...
Trending
- Hey guys, let's build some pyramids!
- @realDonaldTrump Too bad #Republicans won't cut government spending so that Americans can have real tax cuts instead of the fraudulent one they are being sold. This fake tax cut, despite being small, will lead to larger deficits, higher inflation, rising interest rates, and future tax increases!
- The government wants to check my cat
- According to Reuters, this would mark the sixth straight deficit year for the platinum market. http://bit.ly/2zTr8e9
- Silver Jewelry Sales Strong, Reflecting Broader Demand for the White Metal http://bit.ly/1N8Nwwl @SchiffGold
- How Free Market Enclaves in China saved Millions from Starvation
- I think they're going to get ready to cut rates again and loosen financial positions even further as the economy goes into recession. http://bit.ly/2jK7kDH
- #Fed officials have no problem admitting growth is slowing abroad, yet deny U.S. growth is also slowing, even though its slowing faster!
- (1/2) Global stock markets are now nearly as oversold as at the market low in October 1987. Expect a powerful and tradable rally of 20% or so from here. Cover all shorts and go long the most oversold stocks. However, do not expect new highs.
- With homeownership rates falling so low, does it seem like owning a home is even still part of the American Dream?… https://t.co/mj5iqubSQq
Wednesday, April 13, 2016
Why does it feel like many Austrians give a pass on money destruction?
So I just graduated with my BA in econ last December. I have been a fan of Austrian related topics since I was in my late teens. (I am 34 now) I was reading The Creature from Jekyll Island etc. I am familiar with most of the arguments and probably have a solid 500-1000 hours spent listening to lectures from various Mises Academy events, podcasts and whatever else I could scrounge up from the Mises website. A hint to everyone out there who hasn't gotten to listen to Robert LeFavre, his lectures are a true treasure. However I feel like the only side that is stressed in most lectures is the money creation side and the inflation caused by artificially low rates by the FED. When I learned that the repayments on loans lower the money supply, I was shocked. Through simple loan creation there is potential for both problems at the same time, inflation and deflation, because they are two sides of the same coin. Because a loan repayments decrease the money supply, more and more loans need to be created to keep that same money supply. This leads me to think that over time as prices increase to coincide with the larger and larger money supply, we would have problems as debt matures and a loan repayment starts paying back larger and larger amounts of the principle than it did before. Furthermore I feel like we would reach psychic "peak debt" type of level where we just no longer want to service a larger debt burden anymore. Thus, at that point things would start to collapse as well. I feel like this is a separate problem then just the capital based macro arguments that an economist like Roger Garrison would make. (by the way I love Roger Garrison's work. He is one of my favorite economists.) This isn't really a criticism of his 3 quadrant model ( which I love) but I am wondering if his model and the capital arguments are inclusive of the money creation/destruction problem or not. For example, the capital arguments seem to run along the lines of capital structure gets artificially lengthened through artificially low rates giving improper signals to entrepreneurs but the subsistence fund basically ends up being to small to support the production structure. Does this include the monetary element?