Causes, Effects And Forecasts - Part 4 of 4
- Category: Economic Cycles
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M3 - CONT'D
The Differential Picture
But there is yet another way of looking at M3. As Central Bankers always say, it is the difference that counts. Fair enough, let's calculate the difference between years in terms of M3. What we get is the plot below.
Let's take a look at the same events previously described and see if there is any correlation at all.
1 - 1979: Volker takes…
Causes, Effects And Forecasts - Part 3 of 4
- Category: Economic Cycles
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M3
Intro
But of course you are not convinced. Sure. Why not? There is so much propaganda out there (most of it coming from governments which are using your tax money to brainwash you) that you are confused. OK. We got it. We were there with you not so long ago.
In order to clarify the situation, let's take a look at a variable called M3. This statistical variable is what is…
Causes, Effects And Forecasts - Part 2 of 4
- Category: Economic Cycles
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LIQUIDITY - CONT'D
Economic history
Therefore if we should plot world liquidity against time, we should be able to correlate major economic events and incidents to it. Take a look at the plot below
Few of the historical events as they happened:
1 - 1979: Volker takes over the US Fed rising interest rates to ridiculous highs in order to "fight inflation". Liquidity plummets.
2 - Regan is elected in…
Causes, Effects And Forecasts - Part 1 of 4
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One of the biggest mysteries behind the behaviour of markets, finances and the economy in general are the reasons why bad things occur. If you have ever attempted to trade through market timing (i.e. technical analysis), you may have noticed that attempting to forecast the main, secondary and tertiary trends using purely mathematical algorithms is well… pointless. Although it is true that about 4% of all traders are successful, almost…
Paraguay - Right-Wing Politics and Economics - Part 2 of 2
- Category: Conservatism
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CORRUPTION
We stated in a previous article that bribery is actually good (see Bribery The Universal Equalizer), however, we did not said that corruption is. There is a difference. Bribery simply acts as an enabler for people to have access to what was denied to them through the denial of their right to contract freely. Corruption, on the other hand, is theft plain and simple. Corruption happens at a high level…
Paraguay - Right-Wing Politics and Economics - Part 1 of 2
- Category: Conservatism
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We have stated many times that our uncompromising anti-Socialist (or anti-Communist) views are not one-sided. We are equally anti-Right-Wing or anti-Centre politics and economics. We are anti-government and for-people. We believe in you, not governments. However, reality dictates that all countries on earth at this point in time are deeply socialist (see for example any of our Socialism Indices). Consequently, we don't have the opportunity to blast right-wing politics or…
Lesson #232 - Austrian Economics For Dummies - The Law Of (Diminishing) Returns
- Category: Austrian Economics
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In the previous lesson we defined Utility from a Praxeological point of view, which is simply the capacity to diminish uneasiness. We also showed that the utility of a good or service for a person is always determined one item at the time and it depends of the circumstance in which that determination is made. In other words, it is subjective. The Law of Diminishing Marginal Utility simply says that…
Yet Another Democratic Triumph For… Whom?
- Category: Politics
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Yeeeey!!! Romanians voted. Yeeeey! Romanians expressed their will. Booooo! Romanians changed masters Booooo! Romanian problems will only get worse.
And that's pretty much the outcome of the Romanian presidential election which took place last November 16th. However, for any intent and purpose we could say exactly the same from any other election that took place since… well… modern democracy was implemented. Romanians just replaced one bad choice with another. If…
Europe Valiantly Advancing Backwards
- Category: Inflation
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We paraphrased this idea from the famous saying of the not-so-famous US General Oliver P. Smith who said "Retreat, hell! We're not retreating, we're just advancing in a different direction." Nowadays thanks to a new trend to make large databases available for free on the Internet, we are being gifted with the very weapons we need to show you just how bad current economic -and other- situations are. In this…
