How Do We Create a Tangible Money Supply?
A great article posted in WSJ by Bob Gelfond, brought to me by Cafe Hayek briefly lays suggests that the governments influence over the money supply can have a disastrous role. The problem is that he failed to incorporate some very important terminology from Austrian Business Cycle Thoery: malinvestment.
Us Austrians need to point people to fact that malinvestment is the single most destructive product of fiat currencies.
Recently I went to a panel discussion that included UBS’s Art Cashin. He described how Y2K’s money expansion helped lead to a bubble: the run up in tech stocks at the turn of the century and later a housing boom. As we know such investments cost many investors dearly. What Cashin was describing was a classic case of malinvestment, however he, as well as the other panelists, coined such scenario’s as bubbles. I wish we could somehow get prominant speakers to use ABCT terminology such as malinvestment instead of terms like “bubbles” to draw people into reading more Von Mises literature. The literature so compelling I feel it would be hard not to grow are ranks exponentially in the near future.
Follow Teacherman