Your Econonomic Homework

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I like reading economic articles by Richard Ebeling. He explains abstract economic concepts in ways that are understandable for regular people. Although we have written about these concepts in the past, we can always gain greater insight by reading different explanations by different writers. Even if you understand these economic concepts, this article may help when you try to explain them to people who don’t have the same level of understanding.

KEYNES LEAKS THE  TRUTH ABOUT DEBASING THE CURRENCY

As John Maynard Keynes said, “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

The only way Central Banks have gotten away with electronically printing counterfeiting money is because it is difficult to understand. Our job is to shrink that one in a million ratio, because the only way our current problems change is if more people truly understand what results when the Fed intervenes in the market.

RICHARD EBELING ARTICLE

The article, Ludwig von Mises And The Austrian Theory Of Inflations And Recessions, by Richard Ebeling, at epictimes.com, explains, 1) How money emerges from markets not Government, 2) Saving and investment, 3) How central banks cause business cycles, 4) Inflation and misallocated resources, 5) Recession corrects the Fed caused misallocations.

Here are some excerpts from the article.

“Money is a market-based and market-generated social institution that spontaneously emerges out of the interactions of people attempting to overcome the hindrances and difficulties of direct barter exchange……Historically, gold and silver were found through time to have those attributes most desirable for use as a medium of exchange to facilitate the ever-growing network of complex market transactions that enabled the development of an ever-more productive system of division of labor.”

“Like all other prices on the market, the rates of interest on loans coordinate the choices of savers with the decisions of borrowers so to keep supplies in balance with demands for either consumer goods or future-oriented investment goods.”

“An economic recession, therefore, is the discovery period of misallocations of scarce resources in the economy that requires a rebalancing and a recoordination of supplies and demands for a return to market- and competitively-determined harmony in the society’s economic activities for long-run growth, employment, and improved standards of living.”

Related ArticleFederal Reserve Policies Cause Booms And Busts by Richard Ebeling, at austrianaddict.com.

Related ArticleKeynes Was Right In 1919, by austrianaddict.com.

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