Ludwig von Mises

Risks Of Loose Money - Exposing The Link Between Monetary Policy And Social Inequality

... what we are looking at is a flawed system that penalizes saving and encourages reckless spending and printing money. Although we all appear to be stuck in the same environment that combines negative interest rates and price inflation, we have the lower strata of society that is doomed to lose, as they end up spending more, discouraged by negative rates, and instead accumulate debt to keep up with the increasing prices. And then we have the “winners”, who know how to take advantage of the system and thrive in it...

Socialism: The World's Greatest Generator Of Poverty

“What socialists like Senator Sanders should say if they want to be truthful and straightforward,” DiLorenzo thus avers, “is not that government can offer citizens anything for free, but that they want healthcare (and much else) to become a government-run monopoly financed entirely with taxes. Taxes hide, but do not eliminate, the cost of individual government programs.” And these programs are far more expensive to society than they would be on the free market.

A Crisis Of Intervention

"Dishonest money has created a culture of speculation out of ordinary producers and savers. As a result, we confuse financial markets for the source of our wealth." Perhaps at some point our central bankers will come to appreciate that wealth is not created by the printing of money. It is created by honest entrepreneurial endeavour, which is itself jeopardised by constant monetary intervention.

D-Day For Australia's Real Estate Bubble?

This rotting shack in Sydney and its tiny plot of land sold for nearly $1 million in May of 2014 – more than two years ago. Since then, house prices in Australia have increased even further. Yes, it is an insane bubble, no doubt about it... and now, it appears, the banks are finally realizing, and are pulling back.

Satyajit Das Slams Policymaker Ignorance: "QE-Forever Cycle" Means Catastrophe Is Inevitable

"Policymakers have chosen to ignore the central issue of debt as they try to resuscitate activity," warns Satyajit Das in a shocking Op-Ed in today's FT, and with global central banks now printing $180 billion a month (and growing), "the global economy may now be trapped in a QE-forever cycle," confirming von Mises prescription that "there is no means of avoiding the final collapse..."

The Real Message From Asset Inflation

The earliest signs are developing of hyperinflation, more correctly described as a collapse of the purchasing power of all the major government currencies. Extreme one-way bets aside, the overriding reason for valuation disparities is becoming more consistent with the downgrading of cash, rather than a revaluation of assets

A Collision-Course With Crisis: Making The Wrong Choices For The Wrong Reasons

Life is full of examples where folks make bad choices for noble reasons. Not every decision is a winner: sometimes you make the right call, sometimes you don't. That's completely understandable and defensible. Fate is fickle, and no one is 100% right 100% of the time. But what's much harder to condone is when people embrace the wrong decision even when they have ample evidence and comprehension that doing so runs counter to their welfare.

America Needs A Good, Old-Fashioned Economic Depression

A good, old-fashioned, pre-1929 depression (like the short-lived, eleven-month depression in 1920-1921, before the days of “modern” central banking and “enlightened” Keynesian intervention “cures”) is the only tonic that can clear out the malinvestment built up since the beginning of the fiat money era.

We Need More Borders And More States

Thanks to the competitive nature of 'states', many states will often find it difficult to project their power into neighboring states, and thus borders represent a very-real impediment to a state's power. This can then open the door to greater freedom, and even save lives as certain states impoverish or make war on their own citizens. This principle was illustrated yet again this week as the Venezuelan regime opened its border with Colombia to allow Venezuelans the opportunity to purchase food and other supplies on the Colombian side of the border.

The Curse Of Socialist Highways - How Government Ruins July 4th Travel

Unfortunately the travel before and after the 4th of July is a different story, with it widely considered one of the worst travel days of the year. While the desire to take advantage of the holiday to enjoy friends and family is a natural product of humans being inherently social creatures, the degree to which this congestion leads to headache and misery rests solely with the institution responsible for them during the rest of the year – the government.

Brexit: Individualism > Nationalism > Globalism

Ludwig von Mises understood that self-determination is the fundamental goal of liberty, of real liberalism. Today's Brexit vote fired a shot heard around the world, to challenge the wisdom of the “globalism is inevitable” narrative. Ultimately, Brexit is not a referendum on trade, immigration, or the technical rules promulgated by the (awful) European Parliament. It is a referendum on nationhood, which is a step away from globalism and closer to individual self-determination.

Why Brexit Is Better For Britain

Mises argues that whenever the state meddles with the free market, it reduces the standard of living that had prevailed prior to any state intervention. Essentially, a Brexit will remove another layer of government intervention from the lives of Brits, and therefore there shouldn’t be any fear of a Brexit. On the contrary. A Brexit may hold the key to make Europe abandon a doomed course, bringing it to its senses and back onto the road of freedom and prosperity.