I have written other pieces on the topic of fractional reserve banking duration mismatch, which is when someone borrows short-term money to lend long-term and how falling interest rates actually encourages duration mismatch. Falling interest rates are a feature of our current monetary regime, so central that any look at a graph of 10-year Treasury [...]
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The current financial crisis may progress to a phase where people demand and hoard dollar bills but take electronic deposit credits only at a discount which increases until electronic deposit credits are repudiated entirely. The Federal Reserve would be powerless to solve the problem, because while they can create unlimited electronic deposit credits they can’t [...] About our own Keith Weiner-this press release from The Gold Standard Institute: Vienna, AUSTRIA and Scottsdale, AZ USA (April 15, 2012)—The Gold Standard Institute is pleased to announce that Keith Weiner will be establishing The Gold Standard Institute USA to promote the gold standard in this large and important market. The Gold Standard Institute USA [...] I am writing this, having just returned from the fourth course at the New Austrian School of Economics, in Munich. The single biggest theme was the rate of interest and its linkage to prices. Kondratieff, among several others, have observed that rising prices lead to rising interest rates and vice versa. And the opposite case is [...] Our own Keith Weiner will speak on gold backwardation at “Gold and Economic Freedom” a symposium organized by Louis Boulanger with the collaboration of the New Austrian School of Economics in Auckland, New Zealand, November 28 – December 2, 2011. He will appear with his mentor, Professor Antal Fekete. The program is described as follows: Sometimes called the [...] There is an old erroneous view of fractional reserve banking. “Naturally, all fractionally reserved banks are de facto insolvent at all times…” The Acting Man blog is usually very good, but it published an article by Pater Tenebrarum containing this comment. If there is a weakness in Austrian School thinking surely fractional reserve banking is [...] |
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