Although very few in the mainstream media are paying much attention, there’s growing chatter in sound-money circles about the ongoing phenomenon of negative real interest rates.
Friday, October 28th, 2011
Having been doing research for a paper on credit expansion and inflation in the U.S. in the 1790’s, I’ve been looking at mortgage documents from that era. Almost all of them feature what we might call a “sound money clause” i.e. they are explicitly payable in “gold or silver coin.”
Monday, October 3rd, 2011
Monday, September 19th, 2011
Technically speaking, a policy of upholding or expanding the fiat-money stock in an environment where banks are no longer willing to extend credit and issue new fiat money appears to be technically possible. However, the Austrian School of economics points out that an economy's production structure will be turned upside down once the hitherto relentless rise of fiat money...
Sunday, September 11th, 2011
Early in the history of Atlas, Antony Fisher, its founder, was fundraising for a program to promote sound money.
Wednesday, September 7th, 2011
“Faced with the problem of deciding between this and that, we are not entitled to look to Economics for the ultimate decision. There is nothing in Economics which relieves us of the obligation to choose. There is nothing in any kind of science which can decide the ultimate problem of pref
Friday, August 12th, 2011
Today in the New York Times Paul Krugman calls for "an all-out effort by the Federal Reserve to get the economy moving, with the deliberate goal of generating higher inflation to help alleviate debt problems
Thursday, July 28th, 2011
Fractional reserves is an important component of financial stability. Most of the financial regulation is aimed to control this aspect of banking practice such that banks do not become insolvent and a contagious set of bank runs gets into the financial markets.
Tuesday, July 12th, 2011
“In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal…”
Tuesday, June 21st, 2011
In the argument between proponents of fractional reserve and 100% reserve banking, it often comes down to a moral argument with the Full Reservers usually charging that fractional reserve banking (FRB) is inherently fraudulent because it is placing two full, separate claims on the same item, i.e.
Friday, June 17th, 2011
Bitcoins (BTC) have found their way into the news recently, largely as a result of their association with the underground economy via the “Silk Road: Anonymous Marketplace,” and are very much worth examining in a forum dedicated to sound money. They are a completely decentralized, mostly anonymous,
Thursday, June 16th, 2011
Price stability has become the main concern of central banks around the world. Both, inflation and deflation, are considered bad outcomes. But because deflation is considered to be worst than inflation, it became practice to prefer to err to the side of inflation to be sure we avoid deflation.
Tuesday, May 31st, 2011
Following policies, however well intentioned, that inevitably lead from miscalculation to miscalculation, is a recipe for disaster. Key data and assumptions used by central bankers are misleading and dangerous to the economy and “contrary to popular thinking, the recent strengthening in some key US economic data such as employment doesn't reflect economic strengthening but is simply a response to the strengthening of bubble activities that are setting in motion another economic bust.”