In the introduction to Mises’ book, The Theory of Money and Credit, Murray Rothbard explains that many leading economists of his era were using Mises’ theory of the business cycle as a way to explain the Great Depression, “a depression that Mises had anticipated in the late 1920s.”
One of the planks we offered in our book How Privatized Banking Really Works was a return to sound money. It is the theme running through our entire issue this month, even though we didn’t plan it that way. The only reason computer brainiacs spent so much time developing the foundations that led up to Bitcoin, is that they didn’t trust the governments and big banks of the world.
There is a select list of catastrophic life events that are known to have the power to completely bankrupt us spiritually. The field of psychology and other related sciences are quite familiar with the listing. It could be the death of a close family member, or it might be that we are struck with an incurable illness.
Credit expansion is mysterious to the masses of society because they simply do not understand the nature of credit nor do they understand the nature of money. But among the masses there is an even lesser understanding of central banking and its role in creating both money and credit in the economy.
In the concluding chapter of his book, Socialism, Mises paints a picture of a world being turned upside down right before his eyes. Like it or not—and Mises himself was a skeptic—the old justifications for law and morality were crumbling with the influx of Enlightenment rationalism.
Interventionism is a word we often write and talk about without realizing that many of our readers may still not quite understand why we speak of it as being one of the main contributors of our flawed monetary policy. Like the word inflation, interventionism deserves a Misesian interpretation in order to grasp it fully.