Money and Banks

For a long time, banks have sought to keep construction loans “on the books” to collect more interest payments. With a recession looming, these long loans are likely to become delinquent.

Economist Antony C. Sutton understood one of the most fundamental economic truths: gold is money. Thorsten Polleit reviews Sutton’s classic book, The War on Gold.

By ignoring monetary aggregates, central banks may cut rates with no real effect on the productive economy and solve nothing. There may be a significant contraction in economic activity even if rates decline, as credit availability worsens even with declining rates, but markets keep inflating the financial bubble.

Economist Antony C. Sutton understood one of the most fundamental economic truths: gold is money. Thorsten Polleit reviews Sutton’s classic book, The War on Gold.

Since 2019, the total national debt has increased by 25 percent, but interest paid on the debt has increased by 75 percent. More specifically, interest on the debt came in at nearly $573 billion in 2019, but it will top $1 trillion in 2024. 

Bob comments on the key disputes from his recent debate with Dean Baker, underlying the differences between the Austrian and Keynesian frameworks.

One of the biggest and most pervasive myths in modern-day economics is the myth of the omnipotence of the Federal Reserve.

The reason why the economy is not showing significant negative effects from recent drops in the money supply is because the amount of liquidity injected in 2020–21 was so huge that there is a long lag effect as savings are consumed.

Today, the Fed takes a short break from robbing us via inflation and, instead, delivers huge amounts of cash to banks to service Black Friday purchases. The large cash infusions often make banks vulnerable to robberies.

The money supply in October fell for the twelfth month in a row, and with the money supply now falling near or below negative 10 percent for the eighth month in a row. But the money supply is still up 32 percent since 2020.