Money & Banking

That deposit insurance wasn’t the only way to keep a banking system from collapsing was evident enough in 1933 from other countries’ experiences.

As a longterm “stacker”(saver) I am not selling my silver metal or mining positions. In my estimation the upside-to-downside risk ratio is still very positive.

Throughout modern history, the story of gold has unfolded in cycles — crises, recoveries, and rediscoveries. But what’s happening now is not just another rally driven by inflation fears or a nostalgic nod to the 1970s. It’s the beginning of a structural reset — one...

Even Bitcoin’s mysterious creator, Satoshi Nakamoto, knew of Bitcoin’s shortcomings.

The establishment of gold as money is essential to the achievement of a capitalist society.

The philosopher Ayn Rand once explained that the purpose of a definition is to distinguish a concept from all other concepts by identifying its most fundamental characteristic. That’s what makes the concept unique.

All eyes on Jackson Hole this week as the Fed tackles inflation.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, was based on a mistaken belief that the 2008 crisis stemmed from unregulated financial markets. It spawned hundreds of separate rulemakings and was the most extensive financial regulatory bill since the 1930s.

The monetary central planners can never be more successful in determining a “optimal” quantity of money or the “right” interest rates to assure savings-investment coordination than all other socialist planners were when they tried to centrally plan agricultural production or investment output for an entire society.

SDRs are simply a mechanism by which to increase global currencies to meet the demands of governments to spend more than they are able to either collect in taxes or borrow from domestic and international creditors. It is a way for governments to continue to live and spend beyond their means.

Trump’s proposed reform would make the Fed an arm of the White House. It would be a step in the wrong direction.

What should have been a minor economic downturn became the Great Depression because government interventions prevented the market process from working.

Ludwig Von Mises explained why with his Austrian theory of Money, Banking, and the Business Cycle.

By resisting the CBDC tide and instead strengthening our money with a commodity backing (preferably gold), the US would in one fell swoop create the world’s soundest and most stable monetary unit.

Whichever definition one prefers to use — an expansion of the money supply which leads to price increases, or a broad and sustained increase in consumer prices — inflation is caused by the governments and central banks who control the money supply.

The trillion-dollar coin is simply FedGov borrowing $1 trillion from us.

We observe a run on deposits in a commercial bank, then observe that the same thing can happen to other financial institutions, then mistakenly assume these institutions are essentially the same.

Since government regulatory practice has gone beyond making loans to illiquid-but-solvent banks, to paying back all the deposits of insolvent banks, the result is that there is no reason for depositors to care about whether their bank is taking excessive risks.

One good way to understand the current monetary system is to gain a basic understanding of banking history.

The U.S. government has long been waging war on savings, making it the cause of, rather than the solution to, low savings rates.

Commercial banks do not lend out other peoples’ money. On the contrary, banks create new money every time they make a loan.

In 1936, in his General Theory of Employment, Interest and Money, Lord Keynes unfortunately elevated this method--the emergency measures of the period between 1929 and 1933--to a principle, to a fundamental system of policy. And he justified it by saying, in effect:...

If inflation is bad and if people realize it, why has it become almost a way of life in all countries? Even some of the richest countries suffer from this disease. The United States today is certainly the richest country in the world, with the highest standard of...

The government may think that inflation--as a method of raising funds--is better than taxation, which is always unpopular and difficult. In many rich and great nations, legislators have often discussed, for months and months, the various forms of new taxes that were...

If Canada’s relatively “free” banking system was so stable, why did the Canadian government establish the Bank of Canada in 1935? And why did it establish a Canadian Deposit Insurance Corporation (CDIC) some three decades later?