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In a free market, interest rates are set by supply and demand. If there are a large numbers of savers, the banks adjust their rate paid to lenders down and as a result can offer rates to borrowers at a low level. If there is a relative reluctance to save, banks will try to attract lenders by...

The paper money dollar experiment of the last 40 years has reached an unsolvable impasse. Since 1971, when Nixon defaulted on the dollars convertibility into gold there has been no restraint whatsoever on the Federal Reserve's ability to finance the U.S. government's boondoggle spending programs...

End the Federal Reserve and you will end out of control government spending. Currently the U.S. government spends $1.5 trillion more than in collects in taxes. It must borrow this money. In a free market this additional amount of borrowing would drive interest rates higher. Those rates would...

http://www.freemarketfan.com/ It is important that the level of economic understanding in this country is sufficient to overcome the upcoming onslaught of wrongheaded ideas which are doubtlessly coming down the pipe. Recently a politician in South Carolina proposed capping the price at which...

A butcher crams a pound of beef into a meat grinder. Out comes a pound of ground beef. One pound goes in and one pound comes out. Sure it has changed form, but it has not increased in quantity. It cannot. Enter the realm of the monetary policy with the Federal Reserve however, and perfectly...

Hussman is great...no idea what you are reading.

Often times it gets forgotten just why free markets are important. Free markets are the non coercive exchange of goods and services. On the contrary; every law, rule and regulation instituted by government is backed up by the threat of coercive force. What we currently live with in this country...

Before the Fed there were the occasional panics but they too were caused by a manipulated interest rate environment. Fractional reserve lending lowered rates below their natural rates. Two things were different back then, 1) the dollar was still tied to gold so there was no net inflation...

http://www.freemarketfan.com/ See above link.

http://www.freemarketfan.com/ Short animated video at above link.

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http://www.freemarketfan.com/ Last week the Fed announced that it will buy $600 billion dollars in U.S. bond in a move dubbed Quantitative Easing 2 or QE2. Of course left out from the mainstream media’s reporting of this is the fact that the money for these bond purchases will simply be...

I challenge you to show me an example of a boom bust cycle that was not caused by credit expansion and collapse. Tulip bulb mania in 1600s South Sea bubble in 1700s Mississippi co. bubble 1700s 1929 stock market collapse 1987 stock market collapse 2001 nasdaq collapse 2008 housing...

http://freemarketeconomicsinastory.blogspot.com/ What should the role of government be in a free market economy? As we live through a truly historic period of time it is useful to reflect on the necessary requirements for a robust capitalist economy. The series of boom/bust cycles...

Agree it gets worse...but not like in depression. This will be a currency event. The dollar will be history. How we emerge from it depends on education of the masses as to the cause. Today with the internet and forums like this one we have a real hope of bringing the freedom philosophy...

After gore, obama and krugman got theirs the nobel prize is a pock mark on a career. The prize is a total joke.

Actually Hoover was very interventionist. Tom Woods has done a lot of work on this topic. FDR actually ran on a platform of laisez faire as a contrast to Hoover. Had Hoover truly left the economy alone the great depression probably would have been a lot likt the non depression of 1920 which...

Soros is wrong.

Last week, the National Bureau of Economic Research announced that the recession that began in December 2007 ended as of June 2009 and we have been in an expansion since. The vast majority of the American public who are struggling to pay their monthly bills would no doubt disagree with them...