Tuesday The isolated chatter about central banks going digital has turned into a torrent. That probably means that it is going to happen. The media only runs with the approved narrative. The plan is that as the paper fiats fail, so they will be replaced with electronic money – still run by the same central banks (CBs) geniuses who destroyed the paper … [Read more...]
Capitalism or Cooperation?
Saturday The old saying that no man is an island is an absolute truth. If we all had to survive on what it was that each of us can make, grow, construct and cook, our lives would be miserable. Most people would die within a few months. Can you make the petrol for your car, the spare part that’s required, the window to replace the one that broke? Can … [Read more...]
Central Planning Incentivises Corruption
Thursday A neat example of Keith Weiner’s ‘perverse incentives produce perverse outcomes’. “Yi blamed not only government attempts to hide the real data for the discrepancies in numbers, but widespread corruption at the local level. Parents reportedly purchase birth certificates from hospitals for babies that do not exist to receive more public benefits; local governments … [Read more...]
Sunday The reason that all those who have been predicting hyperinflation have been wrong for so long is not hard to find. They are adherents to the Quantity Theory of Money. The QTM states that the more ‘money’ (fiat) is in circulation, the higher that prices will rise. The theory is economically, historically and demonstrably wrong. Many, many factors, … [Read more...]
Thursday Countries never recover from a socialism that is allowed to run its course, i.e., until it has squandered the capital accumulated in the prior period. Compounding this problem is that the human capital also vanishes – for sunnier (saner) climes. The gene pool is weakened as only the old, apathetic and party apparatchiks are left. Lacking capital, intellect and … [Read more...]