Synopses & Reviews
This work examines the role money and debt play in our economy. It shows why we went from the gold standard to fiat money, why that led to increasing inflation up to 1980, and why inflation has receded since 1980. In addition, it explains how today's economic problems arose, why governments cannot solve those problems, and where those problems will lead us. Challenging conventional wisdom, the author suggests that high real interest rates in the 1980s reduced business' ability to profit by expanding productive capacity and reduced the attractiveness of borrowing for consumption. The resulting drive to buy assets instead, such as stocks and real estate, caused rapidly rising prices in those areas. The author foresees a depression resulting from these economic forces--one which governments will be unable to prevent.
This work is unique for it neither espouses any theory nor uses inductive or deductive reasoning; rather, it observes. Its observations of how economic sectors, central banks, governments, business, and consumers can and do use money and debt are trenchant and alarming.
Synopsis
This work examines the role money and debt play in our economy. It shows why we went from the gold standard to flat money, why that led to increasing inflation up to 1980, and why inflation has receded since 1980. In addition, it explains how today's economic problems arose, why governments cannot solve those problems, and where those problems will lead us. Challenging conventional wisdom, the author suggests that high real interest rates in the 1980s reduced business' ability to profit by expanding productive capacity and reduced the attractiveness of borrowing for consumption. The resulting drive to buy assets instead, such as stocks and real estate, caused rapidly rising prices in those areas. The author foresees a depression resulting from these economic forces--one which governments will be unable to prevent.
Synopsis
Examines the recent history and probable result of our use and abuse of money and debt.
Description
Includes bibliographical references (p. [163]) and index.
About the Author
G. LEIGH SKENE is an economic consultant specializing in markets, stocks, bonds, real estate, and commodities.
Table of Contents
Introduction
Was the Gold Standard a Curse or a Blessing? Definitely!
What Is Money?
Cycles in Consumption and Credit
Debt Was Our Most Important Product
Big Brother Believes in Inflation
Winds of Change
Economyths
Can Prices Really Fall?
Making Deflation Work for Us
You Can't Analyze an Irrational Subject
If You Believe in Crystal Balls
The Future Isn't What It Used to Be
Investing in the Future
Are Government Deficits Always Inflationary?
How Much Control Does the Fed Really Have?