Financial MarketsMoney and Banking
Works Published inQuarterly Journal of Austrian EconomicsThe Free MarketSpeeches and PresentationsMises Daily Article
AwardsO.P. Alford III Prize in Political Economy
Dr. Thorsten Polleit, Chief Economist of Degussa and macro-economic advisor to the P&R REAL VALUE fund. He is Honorary Professor at the University of Bayreuth.
Money and BanksMoney and Banking
Without a turn toward hard money, the odds are that the world’s dependence on the Greenback will not decline but presumably grow even more in the years to come.
Only gradually, the damage becomes visible. Economic growth is dwindling; political conflicts over income distribution are increasing; the state becomes more and more powerful.
The critical question is this: Is the Libra really good — or sound — money? Unfortunately, this question cannot be answered in the affirmative.
The ECB isn't stopping with government bonds. It will end the current monetary experiment with widespread intervention in corporate debt and all aspects of the market, further destroying what freedom still exists in debt markets.
Markets are already betting that the Fed will re-commit itself to more stimulus and more ultra-low rates. The markets are probably right.