When the government behaves like a tax cheat.
By Richard W. Rahn, Co-Founder of Metal Convertibility, MCon- May 2021
Did you receive 4.2% interest (the inflation rate) on your bank account this past year? More likely it was under 2%, on which you had to pay “income” tax, even though you lost money in inflation-adjusted terms.
The Constitution gives Congress the power: “To coin Money, regulate the Value thereof.” You probably don’t recall Congress passing a law to reduce the value of your money by 4% — because it didn’t. …
Biden Administration policies are likely to cause the price of energy and many other goods and services to increase.
By Richard W. Rahn, Co-Founder of Metal Convertibility, MCon- Feb 2021
Will inflation increase, and if so, how will it affect you? The short answer is that many economists, including yours truly, expect inflation to increase. Most measures of human activity get better over time, but not inflation numbers — more on this below.
Economists define inflation as a general increase in the price level where the purchasing power of the money declines. But in the real world, some prices increase…
Stimulus checks coupled with government-induced shortages could lead to higher rates of inflation.
By Richard W. Rahn, Co-Founder of Metal Convertibility, MCon- Jan 2021
The persistent myth is that government spending increases economic growth when, in fact, it slows growth beyond a certain point.
The myth is based on an old Keynesian theory argument that if there are unemployed people, the government can boost employment by giving people more money to spend, even though it increases the deficit.
This has some validity in the short run, provided, as Keynes argued, that the borrowed funds are paid back during the full…
The Fed, the Administration and Congress Must Extinguish Excess Pandemic Money to Avoid Inflation
By Richard W. Rahn, Co-Founder, Metal Convertibility, MCon- Jan 2021
Will inflation in the U.S. return in a big way? Inflation is a rise in the average price level, caused by an increase in the supply and/or velocity of money.
If a central bank like the Fed increases the money supply at a faster rate than the economy is producing additional goods and services, inflation results — unless the velocity of money declines. …
By John Tamny
“In reality all economic activity outside the stationary state is speculation” — Ludwig von Mises, Socialism, p. 181–182
The upside-down world shaped by political panic over the virus perhaps unsurprisingly created winners and losers. Somewhat surprisingly given last March’s stock-market collapse in response to the rather sudden imposition of command-and-control, day trading was one of the winners. It was seemingly given life by the sick-inducing shuttering of so much that has long given life meaning.
A nation always transfixed by sports suddenly had to do without. What were fantasy sports fanatics to do? What were gamblers to…
Metal Convertibility, MCon- Sept 2020
We sat down with Dr. Bart S. Fisher, MCon’s counsel and published author to discuss his recent co-authored book.
Tell us about India Wakes and the inspiration for this book...
I noticed that while there was a huge literature on the role of China vis a vis the United States, there were no books on the role that India could play in a new post-coronavirus era. That seemed strange to me, since India is one-sixth of humanity, and a potentially powerful balancer against China and its drive for global hegemony. The challenge in writing a…
by Richard Rahn, Founder, Metal Convertibility, MCon- Aug 2020
The world has been plagued by endless fluctuating exchange rates between countries and persistent and highly variable rates of inflation ever since the major countries of the world began to erode the gold standard over the course of the twentieth century as a direct result of having to finance major wars. Transactions costs, using cash, credit or debit cards, check, or wire transfers, are all unnecessarily high. These problems have undermined saving, investment, and trade — all of which have reduced GDP growth, employment, and real wage growth.
The solution is…
by Alberto Gross, CEO, Metal Convertibility, MCon- Nov 2017
Throughout history, new technologies have come along that quite literally change everything. One of the earliest examples is the study of astronomy which, dovetailed with the practice of agriculture, made it possible for societies to establish themselves as sprawling civilizations and grow out of their nomadic hunting and gathering. A more modern example is the development of efficient forms of lighting — from candles, to kerosene, to electric lightbulbs — that dramatically increased the productivity of our waking hours. And there are certainly many other examples in between. However, most recently…
by Alberto Gross, CEO, Metal Convertibility, MCon- August 2020
Before the invention of computers, humans acted as their own computers. Through experience, a person absorbed information directly and converted that knowledge into valuable labor.
The core theme of economics, even society itself, is the exchange of labor. As economies became more diverse, bartering became unwieldy. The use of currency was one of mankind’s first “data revolutions.” By having all goods and services in a free market denominated in one fungible, standard coin, the value of everything was easily comparable.
Over the centuries, we have come to realize that not all…