'Most important for our topic today was Mises’s warning to the world’s monetary authorities not to suppress the market rate of interest in the name of creating prosperity. The failure to heed Mises’s advice, indeed the full-fledged ignorance or outright defiance of that advice, is the monetary story of the twentieth century.''Last year we observed another important centenary—the 100-year anniversary of the publication of Ludwig von Mises’s pathbreaking book,
The Theory of Money and Credit, written when the great economist was just 31. The end of an era was approaching as that book reached the public. A century of sound money, albeit with exceptions here and there, was drawing to a close. It had likewise been a century of peace, or at least without a continent-wide war, since the Congress of Vienna. Both of these happy trends came to an abrupt end for the same reason: the outbreak in 1914 of World War I, the great cataclysm of Western civilization.
It was as though Mises had one eye to the past, speaking of the merits of a monetary system which—while not perfectly laissez-faire—had served the world so well for so long, and another eye to the future, as he warned of the consequences of tampering with or abandoning that system. Mises carefully dismantled the inflationist doctrines that were to ravage much of the world during the twentieth century.
The book covered the whole expanse of monetary theory, including money and its origins, interest rates, time preference, banking, credit, inflation, deflation, exchange rates, and business cycles.
Most important for our topic today was Mises’s warning to the world’s monetary authorities not to suppress the market rate of interest in the name of creating prosperity. The failure to heed Mises’s advice, indeed the full-fledged ignorance or outright defiance of that advice, is the monetary story of the twentieth century.
The single most arresting economic event of the Fed’s century was surely the Great Depression. This was supposed to have discredited laissez-faire and the free economy for good. Wild speculation was said to have created a stock-market bubble, and the bust in 1929 was what the unregulated market had allegedly wrought. Other critics said the problem had been the free market’s unfair distribution of wealth: the impoverished masses simply couldn’t afford to buy what the stores had for sale. In later years, even so-called free-marketeers would blame the Depression on too little intervention into the market by the Federal Reserve. (With friends like these, who needs enemies?)
Ludwig von Mises offered a different explanation, as did F.A. Hayek, Lionel Robbins, and other scholars working in the Austrian tradition in those days. Murray N. Rothbard, in turn, would devote his 1962 book
America’s Great Depression to an Austrian analysis of this misunderstood episode.'
- Llewellyn H. Rockwell Jr.,
A Misesian Century, February 05, 2013
'A pure fiat money system, once it has set into motion, will lead to collective corruption on the presumably grandest scale.''The rise in society’s time preference is the central explanatory factor for explaining the emergence of fraudulent banking, which is epitomized by a pure fiat money regime.
..
A pure fiat money system, once it has set into motion, will lead to collective corruption on the presumably grandest scale.
..
From praxeology, we know for sure that a fiat money boom will ultimately end in depression. We also know that efforts to escape depression by increasing the quantity of fiat money even further will only postpone the day of reckoning, and that it will raise the costs of the depression in the future.'
- Thorsten Polleit,
Banking and the State, February 01, 2013
Context ‘..the “group” .. debt..’- Frans Veldman (
Affective Introspection)
The suffocation of unsustainable global debt – Total global debt is now over $190 trillion and more than three times global GDP. Contagion with European Union., 2012
Begrüßungsrede, Dr. Jens Weidmann, 18.09.2012
The Errors of Keynes, Dr. Philipp Bagus, February 07, 2013
'..Like monetarists, Keynes held no capital theory .. the role time plays..' - Dr. Jesús Huerta de Soto
'..fiat inflation is a powerhouse of social, economic, cultural, and spiritual destruction.' - Dr. Jörg Guido Hülsmann
(Monetary) bureaucracy - '..our organizations are .. hostages to an ideology that is, in a real sense, inhuman.' - Dr. Gary Hamel
'..the current monetary system, based on credit expansion .. “manic-depressive” behavior..' - Dr. Jesús Huerta de Soto
(Haptopraxeology) 'Austrian Thymologists Who Predicted..' - Dr. Walter Block
'..The world has needlessly suffered unspeakable misery..' - Dr. Harry C. Veryser