When an economy falls into a recession, we typically observe a cluster of people making similar investment mistakes. According to historian Stephen Davies, these investment errors occur because governments or central banks manipulate the supply of money. These manipulations place artificial downward pleasure on interest rates, creating false signals that entice individuals to invest in what end up being unprofitable ventures. Booms and busts are not a new phenomenon of this century, but rather, have occurred throughout history both in America and around the globe.
- Why sound money is important – and the Bank must go (abolishthebank.wordpress.com)
- 2 minute explanation of boom and bust (abolishthebank.wordpress.com)
- Blame the Fed for the Financial Crisis ~ Ron Paul… (gunnyg.wordpress.com)
- Winners And Losers: The New Economy (zerohedge.com)
- Blame Government, Not Greed – and, Please, Ignore Central Banking (jhaines6.wordpress.com)
- Wide Spread Economic Panic – The Economy And You (profitonknowledge.com)
Economic Depressions: Their Cause and Cure
Need a short monograph on Austrian business cycle theory? This is the one to get.Murray Rothbard was the master of reducing complicated theories to their very essence while retaining theoretical rigor, and this essay is a case in point. It was written in 1969 and published in the form of a tiny book that achieved a huge circulation. It has not been in print since that time, but it is now back in this new release.