Interest

The Governments Were Financed Through by the Printing Press, And Now We Have Inflation

The rise in inflation does not fall from the sky. Inflation means general devaluation of money, not an increase in individual prices. It is the result of the money glut of the last several decades. Avoiding the dramatic consequences could make things uncomfortable.

Inflation Is Always and Everywhere a Monetary Phenomenon, Even in Pandemic and War

Damaged supply chains and war are boosting prices, but they are not the only real cause of rising inflation. The problem is the central banks’ expansionary monetary policy.

With a Carrot and a Stick: The Effects of the European Central Bank’s Negative Interest Rate Policy on the Banking System

The ECB is weakening bank profitability while strengthening it in a way that allows it to implement policy goals with the help of commercial banks. Read the new study.

Paper Money Tricksters: From John Law to Today’s Central Banks

Today’s money experiments follow to the letter the procedure of one of the greatest money tricks in history: the paper money experiment of John Law in France 1716-1720.

Low Interest Rate Policy Cripples the Economy and Reduces Prosperity

Japan’s low interest rate policy began 30 years ago, about 15 years earlier than in the EU. But three decades of low interest rate policy meant three lost decades for Japan. In an interview with Stefan Beig, economist Gunther Schnabl explains why the low interest rate policy is so damaging to prosperity.

No More Growth—And Happiness Is Just Around The Corner

Critics of growth call for zero growth or even “degrowth”. Their fears are based on economic misconceptions and a failure to recognize the capitalist dynamic of decoupling growth from resource consumption. Moreover, they fail to recognize the needs of poor countries.

The Discovery of “Capital” in the Economic Ethics of the High Middle Ages

The pioneers of modern economics were moral theologians of the Middle Ages. Petrus Johannis Olivi discovered, among other things, “capital,” the subjective theory of value, and distinguished interest from usury. He thus paved the way for a positive view of commercial activity.

Our Superstate: Controlled by Party Headquarters, Bureaucracies—and Central Banks

A new book by Beat Kappeler shows that the separation of powers is being undermined, parliaments are being commanded by governments and bureaucracies, and the debt economy is being financed by central banks. The author also proposes remedies for these issues.

The Coronavirus Crisis Shines Light on the Debt Spiral

The coronavirus crisis has exposed once again the fragility of our debt-based economic system. There are alternatives to this artificial system of the last 70 years. There are ways that we can better incentivize saving, which will create not only more productivity but more robustness.

The Coronavirus Wake-up Call

The economy and the financial sector need more robustness. The corona epidemic shows this. Because of low interest rates, the number of weak companies grew so rapidly that their failure is now a threat to the rest of the economy.

The Political Management of the Coronavirus Crisis: The Potential Harm of Damage Compensation

We could be facing the biggest economic crisis of all time. Will politicians be able to learn the lessons from this and use the crisis as an opportunity for a new beginning in economic and public health policy?

The Interest Rate Reversal Has Ended: What’s Next?

Another recession is very likely. For the first time it will not be possible to mitigate it with further interest rate cuts. Previously unknown scenarios are looming. One thing is certain: savers will need to take on more personal responsibility.

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