Sound Banking

Friday, January 27th, 2012

This will make you think twice about opening that bar tab.

Explaining Modern Finance And Economics Using Booze And Broke Alcoholics

Thursday, January 26th, 2012

The cost to America's economy, by destroying savings and price signals, is too great; the power of the Fed must be rolled back, then eliminated.

Thursday, January 12th, 2012
Have you ever wished you had all of the gold in the world?  Or that you had the courage to put everything you owned on one spin of the roulette wheel?  Well, what if you did, and won, and you were still broke again by June?  Welcome to the world made possible by unsound money:
Monday, January 9th, 2012
Discussion about the gold standard often has advocates and critics talking past one another. One of the reasons is that there are members of both groups who do not know or, during the heat of argument, do not acknowledge that there have been many varieties of the gold standard.
Monday, January 9th, 2012
WASHINGTON—The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct.
Thursday, December 29th, 2011

World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011.

Wednesday, December 28th, 2011
The election of Spain's new President of Government, Mariano Rajoy, has produced quite a few expectations. His plan seems to go against the tide on some focal points regarding the problems of the European Crisis.
Wednesday, December 28th, 2011
Bombastic European Speaker Nigel Farage MEP, UKIP, Co-President of the EFD Group in the European Parliament (Europe of Freedom and Democracy) shows American representatives how it should be done.  He attacks the failed currency union, unelected bureaucrats, and buying debt with debt.
Tuesday, December 20th, 2011
Rep. Ron Paul sponsored this Congressional lecture on "What About Money Causes Economic Crises?", the concluding lecture in a three part series on the basic principles of money for Congressional staff. As a continuing educational tool this lecture was filmed and is provided to the public.
Monday, December 19th, 2011
A while back there was a story in the Wall Street Journal (“America’s Debt Cutting Hampers Growth,” Oct. 22) about deleveraging in the U.S. economy.
Thursday, December 15th, 2011
Strange and amazing things happen when sovereign debt levels get out of hand.
Monday, December 5th, 2011
Jon Stewart of the Daily Show sits down with Professor Butterscotch to discuss the loan of $7,700,000,000,000 to the banks at 0.01% interest, which they duly lent back to the government for 3%, or 300 times the amount they borrowed at.
Friday, December 2nd, 2011
The Baring Crisis of 1890 is pointed out as the first modern international emerging financial crisis. The collapse of the banking system in Argentina came very close to triggering a financial crisis in London, the major international financial center.
Friday, November 25th, 2011
The following passage in a note at The Economist points out to the well-known problem of moral hazard with lenders of last resort.
Sunday, November 20th, 2011
The recent political events in Europe, especially the situation in Greece and in Italy, brought new concerns about the situation in Europe and the future of the Euro. If countries do not honor their debts, how hard will their economy be hit?
Wednesday, November 16th, 2011
The financial, and fiscal, crisis in Europe has brought doubt to the future of the Euro. Can it persist, or are we witnessing the end of the Euro? But, if the Euro is to be abandoned, how will the transition play out?