Tag Archives: central bank

Demographic Delusion

Michael Power, a strategist at Investec Asset Management and long-time inflation dove has penned a piece in the Business Day online titled, Demographics determine bipolar inflationary trends.  Power has for years advocated for higher price inflation in South Africa, which … Continue reading

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The SA Reserve Bank’s record

I dusted off this piece I did a year ago on chrislbecker.com where I assessed the SARB’s performance in accordance with its own prescribed legislative mandate. The results are dismal to say the least.  I conclude, Not only has the Reserve Bank failed at each … Continue reading

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RE: On The Empirical Relevance of Austrian Business Cycle Theory

My friend Grant McDermott, to whom I wrote why I think the empirical relevance of ABCT by Lester/Wolff may produce “mixed” results replied to me in this post. This is a quick one to elaborate my points. Firstly Grant says … Continue reading

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The Declining Relevance of Fractional Reserve Banks

Here is a fascinating article on Wired about the declining influence and relevance of fractional reserve commercial banks on the lives of individuals. It argues that banks will one day look more like Google, Facebook, or Apple. Interesting about this … Continue reading

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Technology and ABCT

Technology has a very interesting and highly complex effect on business cycles.  There is a lot that can be said about this topic but I just want to highlight a few important aspects of technology in its relation to ABCT and … Continue reading

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The problem when fractional banks still work

Since the financial crisis in 2008/09 the Federal Reserve has printed trillions of dollars and purchased assets with them, mostly US government bonds and mortgage-backed securities.  This has caused the assets on the Fed’s balance sheet to swell by around … Continue reading

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How to Fix Greece in 7 steps

My article is posted over at Mises.co.za. I argue that Greece needs to: Abolish legal tender law Liquidate state assets for gold Back fractional bank deposits with the proceeds End all state services Repudiate the national debt Deregulate arms and private … Continue reading

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The Currency War for Dummies

My new article out on www.mises.co.za. The world is in a currency war. What is that? It’s when governments devalue their currencies in order to protect domestic industries against foreign competition. They believe that if their exchange rate is weaker … Continue reading

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Leon Louw Is Right…In A Sound Money World

Leon Louw has an article in today’s Business Day titled, “Econobabble has everyone worried over nothing.” Leon makes an essentially sound point, which is that the notion of a trade ‘deficit’ or ‘surplus’ is largely bogus.  Louw is particularly debunking … Continue reading

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Don’t forget SARB QE: Part 2

Since 2000 the SARB probably printed about R100 billion out of thin air.  This allowed the commercial banks to use about R40 billion to fractionally leverage at about 40:1 and create about R1,6 trillion in additional money out of thin air … Continue reading

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