Austrians and Empirical Evidence

I was asked today by a friend the following: [C]an you explain to me the canard about how Austrians don’t believe empirical evidence or statistics factor into the study of economics? Is this true? It is often argued that Austrians work on presupposed axioms which may or may not have empirical evidence for it, and…

The Big Short

For most people, the events of 2008 and 2009 are shrouded in mystery. Millions lost their homes and jobs, banks went out of business or were absorbed by other financial institutions, and there was constant political tension about what the proper response by the government should be. The Big Short is the film adaption of…

A Review of Austrian School for Investors

As interest in the Austrian School continues to expand in our day, people are going to increasingly consider the practical relevance of this highly philosophical school of economic thought. After all, for better or for worse, we live in the “practical age.” People are less interested in theory and more interested in “whether it works.”…

Bernie Sanders’ Fed Plan

Bernie Sanders’ advice on the fixing the Fed demonstrates the fact that being “anti-Fed policy” is not enough. One must not just be a critic, one must also know what the Fed is doing that is bad, and what the better solution would be. Unfortunately, those of us who think that the Fed has been an engine…

The Swiss 100% Reserve Plan

The Telegraph reported last week that “Switzerland will hold a referendum to decide whether to ban commercial banks from creating money.” The article continued to say: The campaign… is designed to limit financial speculation by requiring private banks to hold 100pc reserves against their deposits. “Banks won’t be able to create money for themselves any…

Fear the Boom, not the Bust

According to most financial commentators, the economy has a cyclical nature about it such that there are times where everything is booming and business is expanding and there are times when everything turns upside down and the economy “contracts.” As such, it is the times of boom when we ought to be enjoying ourselves and,…

Money: A Taxonomy

What is money? Most people have only a vague idea. It has something to do with the green pieces of paper in one’s wallet; but then again such paper is rarely used in our digital age. The intention of the present article is to give an overview of the different financial instruments that people often…

Austrian Investing Table of Contents

I am excited to begin reading and blogging through this book next week. It’s on its way from Amazon. I have already given some pre-read thoughts on it here. Since then, I dug up a picture of the table of contents online. For those interested:  

Fictitious Economic Models

In compliment to my own recent thoughts on government macro-level statistics, David Stockman refers to them in his recent column as follows: The hard core reality, however, is that the very foundations of the Keynesian full employment model cannot be measured, specified, validated or achieved. For all practical purposes there is no such thing in…

Pater Tenebrarum: Gold and the Fed Funds Rate

From Acting-Man: It is widely assumed that the gold price must decline when the Federal Reserve is hiking interest rates. An example is given by this recent article on Bloomberg, which informs us that SocGen believes “gold will be a casualty of Federal Reserve policy”. Never mind that the assumption that the Fed will now be…

The Meaning of the Interest Rate Announcement

In our current environment, and against the warning of eminent free market economists in the Austrian tradition, the interest rates in the global economy are highly manipulated as a goal of monetary policy. Specifically, the interest rates are forced downward in an attempt to “stimulate the economy” and increase demand. Since late 2008, the Federal…

Austrian School for Investors: Austrian Investing between Inflation and Deflation

I’ve been anticipating this book for some time and it has finally been published in English. I first heard about it via Pater Tenebrarum on his Acting Man blog. It immediately grabbed my attention because it was written by some folks associated the Austrian oriented Incrementum Fund in Liechtenstein. Frank Shostak, who in my opinion is the very best…