The Chinese government has done the following to prop up its stock markets: 1. Cut interest rates several times 2. Cut reserve requirements 3. Prevents large stock owners of a company from selling their share for 6 months 4. Induced stock brokers to buy $19 billion of shares 5. Imposed restrictions of short selling 6. Stopped new
Volume 17, No. 4 (Winter 2014) KEYWORDS: John Maynard Keynes, marginal efficiency of capital, net present value, interest rates, central banking JEL CLASSIFICATION: E12, E22, E52, In his recent article, Edward W. Fuller (2013) compared the Keynesian Marginal Efficiency of Capital approach with the Austrian Net Present Value approach. While his
In a world of private property rights, where the contracts that derive from those rights must be honored, there would be no controversy about the rights of corporate “stakeholders.” Owners of capital resources pool them and delegate day-to-day control to corporate management as their agents. The only stakeholders those delegated agents agree to
In 2014 there was a record number of skyscrapers and super skyscrapers around the world. In addition to frenzied skyscraper building, there has also been several existing skyscraper that have changed hands at “superlative” prices in recent years. According to Bisnow : “This week’s commercial real estate banner headline was Blackstone’s reported
“See the coast clear and then we will depart.” Shakespeare, Henry VI While reading a press release today I summed up its overall message in my mind as “the coast is clear.” Then it hit me that I did not really know what this common phrase really meant. My first thought that it had to with Colonial smuggling and the American Revolution. It was
March’s economic report from the National Association of Credit Management dropped to the lowest it’s been this year. The combined index fell from 53.2 in February to 51.2 this month. NACM economic Chris Kuehl had hoped the previous month’s reading was just a fluke and he noted that we are now at the lowest point since the recession. The report
Why is it that only former Fed officials are willing to say the truth about the economy and monetary policy. I know they don’t know the whole truth and they are blinded by power, but why do they always wait till they are “former” to tell the truth. In this CNBC interview former Fed Governor Kevin Warsh said that Janet Yellen does not seem to
Tim Knight At Slope of Hope posted some interesting charts regarding margin debt at the New York Stock Exchange and the S&P 500. It shows that margin debt and the S&P are both near all time record levels. When Austrian economists talk about the Fed’s ultra low interest rate policies engineering higher stock markets, this is the most obvious and
On Tuesday, Vermont Senator Bernie Sanders stood up on the stage of a Democratic Party presidential debate and proudly proclaimed himself a “democratic socialist” to an adoring crowd. Spurred on by myths about the success of socialism in countries like Sweden and Norway , the horrors of a centrally planned economy have never been more popular in
Not sure what to make of this. The “junk silver” (90% used US silver coins) seems to have disappeared. After checking several websites that deal in such coins almost all categories (e.g. dimes, quarters, half dollars) have no inventory to sell. You can still buy bright and shiny versions of the coins at around a 20% premium over the silver
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.