Squatting On The Shoulders Of Midgets

Notes from the Field

Date: December 6, 2012

Reporting From: Sovereign Valley Farm, Chile

Isaac Newton, the father of classical mechanics and progenitor of nearly every technology we use today, was easily one of the top 10 most influential minds in all of human history. So much so that even Albert [...]


Ham and Yams and QE

Ben and I are stranded on an island, Robinson Crusoe-like and I, on my east side of the island, have been planting yams, collecting coconuts, and doing a little fishing. Ben decides to hunt on his west side and offers to trade a boar hindquarter for some yams. We negotiate and make a deal: 20 yams [...]


Irredeemable Paper Money

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 [...]


Is Inflation, A Stagnant Economy, And Lower Standard Of Living In Our Future?

Despots and democratic majorities are drunk with power. They must reluctantly admit that they are subject to the laws of nature. But they reject the very notion of economic law … economic history is a long record of government policies that failed because they were designed with a bold disregard for the laws of [...]


Where Is Superman When We Need Him The Most

Friday humor for you. Superman vs. Fiat Money!

We should nominate him for Fed Chairman because he certainly understands money. Lois obviously doesn’t.


Ron Paul To Bernanke: “The End Stages of a Grand Experiment”

Ron Paul’s interrogation of Fed Chairman Ben Bernanke in two parts, from the Congressional Hearing earlier this week:




Our Problem Is Not Insolvency: It’s Infinite Solvency

Monetary policy is now sexy. The young are into it. “End the Fed” rings out at Ron Paul’s political rallies like “We Will Rock You” used to ring out at Queen concerts.

There is, indeed, a direct relationship between the popularity of economics and monetary policy among the under 30s and the overwhelming support of [...]


Beware False Idols

Playing with expectations works temporarily. The risk-on trade is in a mini bubble, as today’s, buyers want to be ahead of the slower ones. The buying trend is sustainable only if the global economy strengthens, which is unlikely. The stocks aren’t cheap. Desirable consumer stocks are selling for 20 times earnings. Banks are cheap [...]


Winners And Losers: The New Economy

There was a wonderful article in the Wall Street Journal this weekend on the ultra (über, hyper, 1%) rich. The article (“The Wild Ride of the 1%“) discusses the volatility of wealth of the top 1% income earners in America. The author, Robert Frank, reveals that these people’s income and wealth have become much more unstable [...]


Fed Vice-Chairman Janet Yellen: QE3 ‘Appropriate’

“[S]ecurities purchases across a wide spectrum of maturities might become appropriate if evolving economic conditions called for significantly greater monetary accommodation.”

Fed Vice-Chairman Janet Yellen said today that we may need another round of quantitative easing (QE3):

Federal Reserve Vice Chairman Janet Yellen said a third round of large-scale securities purchases might become [...]


Martin Wolf ‘Gone Mad’ Over Money Printing

“Mises was infinitely patient and kind with even the most dim-witted of us, constantly tossing out research projects to inspire us, and always encouraging the shiest and most awestruck to speak. With a characteristic twinkle in his eye, Mises would assure them: “Don’t be afraid to speak up. Remember, whatever you say about [...]