Mises Institute Archives - Rethinking the Dollar

What the Trade Balance Means for a Currency’s Purchasing Power

Sep 15, 2020 | Economic Collapse

In July this year the US trade balance stood at a deficit of $63.6 billion against a deficit of $51 billion in July last year. Some commentators regard a widening in the trade deficit as an ominous sign for the exchange rate of the US dollar against major currencies...

Sound Money Is Key to Defending Our Liberties

Sep 3, 2020 | Economic Collapse

The title of this article epitomizes what the Austrian economist Ludwig von Mises (1881–1973) called the “sound money principle.” As Mises put it: The sound-money principle has two aspects. It is affirmative in approving the market’s choice of a commonly used medium...

2020 Will Be a Record-Breaking Year for Debt. How Long Can This Last?

Aug 28, 2020 | Economic Collapse

The deficit narrowed during July after months of record shortfalls in federal tax revenues. During April, May, and June of this year deficits surges to unprecedented highs as economic activity dried up, workers were furloughed and laid off, and tax payments were...

Throwing Printed Money at This Problem Won’t Make It Go Away

Aug 10, 2020 | Economic Collapse

If while driving your car you suddenly noticed that you were heading straight for a cliff edge, of course the sensible thing to do would be to apply the brakes and sharply turn the wheel. If, however, rather than traveling by yourself you were instead driving a...

How Central Banks Destroy Money’s Purchasing Power

Jul 9, 2020 | Economic Collapse

Most economists hold that a growing economy requires a growing money stock on grounds that growth gives rise to a greater demand for money that must be accommodated. Failing to do so, it is maintained, will lead to a decline in the prices of goods and services,...