BankNotes – January 2016

Recently Senator Ted Cruz aggressively questioned Janet Yellen on the Fed’s possible role in causing the financial crisis and subsequent recession. In particular, he claimed that “in the summer of 2008” the Fed “told markets that it was shifting to a tighter monetary policy,” and that this announcement “set off a scramble for cash, which caused the dollar to soar, asset prices to collapse, and CPI [growth — RPM] to fall below zero, which set the stage for the crisis.”

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BankNotes – December 2015

If you want to do business in Venezuela, you will have to let the government do your bookkeeping to make sure you aren’t making too much. Venezuelan president Nicolás Maduro’s decree, called the “Organic Law of Fair Prices,” sets a maximum “fair” profit at 30 percent of costs. Besides the practical problems of implementing such a measure, the ceiling rests on a basic misconception: the idea that there is such a thing as “fair” or “excessive” profits misunderstands the function of profit — and loss — in a market economy.

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BankNotes – November 2015

I am both saddened and excited to share with you some changes, and new training opportunities available at our annual Think Tank Symposium. Saddened because Nelson has publicly announced that he will no longer lead his ground-breaking Becoming Your Own Banker Seminar after November, 2016.

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BankNotes – October 2015

When I was in the second through fourth grades in grammar school we lived across the road from the airport in Athens, Georgia. I was just a kid who became fascinated with airplanes. Fantasizing what it would be like to be a pilot of one occupied a great deal of my time. Would you believe it? Just six years later I made my first solo flight on that very airport in a Taylorcraft BC-12D – a two-seater, side-by-side “tail-dragger” light airplane, powered by a 65 horsepower Continental engine.

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BankNotes – September 2015

To put this story into context we will need to go back in time to the Spring of 1957. That was when I was introduced to the Austrian School of economic thought through The Foundation for Economic Education (FEE). The book Economics In One Lesson by Henry Hazlitt is where my journey began.

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BankNotes – August 2015

C. Northcote Parkinson (1909 – 1993) was an interesting British naval officer who left us some valuable insights into human behavior. His sense of humor makes for good reading. His little essay, Parkinson’s Law, written in 1955, tells us “Work expands to fill the time available for its completion.”

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BankNotes – July 2015

In the economic world today we hear the words, “recession” and/or “depression” used regularly to describe a downturn in economic activity. There have been booms and busts in the economy throughout all history. Graphs are presented that illustrate the highs and lows over a period of time.

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BankNotes – June 2015

Have you ever noticed that we all are completely surrounded with noise in our daily lives? Even as I write these words I can easily hear the noise my computer is making and there is the noise that the keyboard makes each time a key is stroked. There is the noise that our air conditioning system makes.

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BankNotes – May 2015

Perhaps due to it not being as readily quantifiable as government taxation, debt, welfare, and money creation; regulation has too often been superficially dealt with. In many ways, the largely “hidden tax” of regulation is a bigger threat to liberty, economy, and morality than other weapons of forceful government intervention.

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