Economics

Robert P. Murphy: The Economics of Bitcoin

"Some critics (who are often proponents of hard money such as gold) object that Bitcoin is in a perpetual 'bubble' because it has no 'intrinsic value.' Yet these critics often seem to overlook just how much the exchange value of gold and silver is (and was) due to their use as media of exchange. Thus, if Bitcoin is currently in a bubble, then, by the same token, gold bullion in the year 1900 (say) was also in a massive bubble because it was trading for a far higher exchange value than could be explained merely by its industrial and ornamental uses." Continue reading →

Continue ReadingRobert P. Murphy: The Economics of Bitcoin

Robert P. Murphy: The Economics of Bitcoin

"Some critics (who are often proponents of hard money such as gold) object that Bitcoin is in a perpetual 'bubble' because it has no 'intrinsic value.' Yet these critics often seem to overlook just how much the exchange value of gold and silver is (and was) due to their use as media of exchange. Thus, if Bitcoin is currently in a bubble, then, by the same token, gold bullion in the year 1900 (say) was also in a massive bubble because it was trading for a far higher exchange value than could be explained merely by its industrial and ornamental uses." Continue reading →

Continue ReadingRobert P. Murphy: The Economics of Bitcoin

Robert P. Murphy: The Economics of Bitcoin

"Some critics (who are often proponents of hard money such as gold) object that Bitcoin is in a perpetual 'bubble' because it has no 'intrinsic value.' Yet these critics often seem to overlook just how much the exchange value of gold and silver is (and was) due to their use as media of exchange. Thus, if Bitcoin is currently in a bubble, then, by the same token, gold bullion in the year 1900 (say) was also in a massive bubble because it was trading for a far higher exchange value than could be explained merely by its industrial and ornamental uses." Continue reading →

Continue ReadingRobert P. Murphy: The Economics of Bitcoin

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes

Why Suppressing Feedback Leads to Financial Crashes

"The suppression of feedback only dams up risks and imbalances: out of sight, out of mind. But the imbalances haven't vanished; they're piling up unseen in the system, where they eventually break out at the system's weakest point. Central-planning manipulation 'works' by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and 'growth.' But the consequences of removing or suppressing feedback are catastrophic longer term, as the imbalances and risks pile up unseen until they bring down the entire system." Continue reading →

Continue ReadingWhy Suppressing Feedback Leads to Financial Crashes