Tag Archives: Eurozone

What is it about money?

I was going to hold off blogging until the New Year, but irritation drove me to posting … In a recent article, Alan Kohler had this to say: The real war is between monetary policy and the Digital Revolution – between the world of finance trying to reduce the value of money and therefore debt, […]

Money, prices, assets and evasions of responsibility

Understanding the equation of exchange can help see what a massive evasion of institutional responsibility lies behind the Great Recession and the Eurozone crisis. Economist Irving Fisher developed the original algebraic formulation of the equation of exchange, in his The Purchasing Power of Money (1911): MV = PT Money x Velocity = Prices x Transactions. Fisher’s use of […]

They did it again

One of my basic analytical principles is that things reveal their nature in history (including the history that has not happened yet — that is, what has happened is not the sum of possibilities). If one wishes to understand current events, then cultivate a sense of history for the past is the cause of the […]

What can the price of beer tell us?

What can the price of beer tell us? Quite a lot according to this amusing piece (via). Here is a chart of beer prices in various Eurozone countries since 1996. Prices in Germany have remained pretty steady, with the price of beer rising about 1% a year. The price of beer in Greece has surged […]

Broken by the fix

What do the goldzone Great Depression (1929-3?) and the Eurozone Great Recession (2008-?) have in common? They were both created by European central banks with the US Federal Reserve (the Fed) as accessory during and after the fact. (Yes, the monetary shock which set off the Great Recession started in Europe though the responsibility of the […]

Debt and boom

The slogan for this post is: don’t think debt, think safe assets. (This post is partly provoked by this post by Paul Krugman responded to by Scott Sumner and by Marcus Nunes.) In my Debt, Doom and Despair post I noted that a hugely debt-burdened post-Napoleonic Wars UK (where the national public debt was probably about […]

The Hindus of the Abrahamic World

Catholics and Orthodox are the Hindus of the Abrahamic world. The divine order is populated with many Personages–not merely the Trinity, but also Mary, Mother of God, Queen of Heaven, Star of the Sea, and a myriad of angels and saints. A supernatural prolixity that manifests in a certain approach to religious art and architecture. […]

Easy Guide to Monetary Policy

What money is We use money to transact and the money we use is fiat money, money backed only by government decree. In economic terms, money is a transaction good and all that fiat money is, is a transaction good; the only point in holding such money is to be able to engage in transactions—its expected swap […]

Distractions, distractions…

While the country was (is) entertained (ish) by News Ltd shenanigans, pie chucking in parliament and Wendi Deng coming out as one of the Charlie’s Angels, the Euro has been slowly tanking. There are now fairly short odds in various places that the whole thing will go belly-up, or at the very least the weaker […]