An interfering government is the only barrier to any revival of a capitalist society. In a free market, market price signals communicate and reveal the subjective valuations of all market participants, including time preference toward present goods over future goods. Market price signals represent scarcity and important information, such as market interest rates, and are … Continue reading Interest Rates Are A Market Price Signal Not To Be Interfered With
“Australia saw deflation for the first time in seven years in the first quarter, as falling petrol, food, and clothing prices drove down the cost of a basket of goods and services.” (Mulligan, 2016) The Reserve Bank of Australia having prolonged deflation through low interest rates to the point of almost zero, market participants are demanding through market … Continue reading Deflation Down Under, RBA Kanagroos Kick For Lower Rates!
Having faith in the Keynesian belief intends that government spending helps provide economic stimulus for the economy, in doing so this view can contradict itself when governments revenue exceeds government spending, causing malinvestment if anything. (Higgs, 2009) Additionally, it follows as the government is the largest net borrower then governments themselves are the ones who … Continue reading Money Pumping – What Malinvestments?