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Thorsten Polleit

Thorsten Polleit



Articles by Thorsten Polleit

Inflation as a Tool of the Radical Left

5 days ago

“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch its currency….Lenin was certainly right. There is no subtler, no surer way of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”1
Keynes does not provide a concrete source backing his words but deliberately used the phrase “is said to have declared.” For a good reason. As Frank W. Fetter (1899–1991) pointed out, there is no evidence at hand that Lenin actually said or wrote these words, and anyone quoting Lenin on inflation would be indeed be referring

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Inflation as a Tool of the Radical Left

6 days ago

It becomes clear that ramping up inflation is a tool for those who wish to overthrow the existing economic and social order—to get rid of what little is left of the free market system. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “Inflation as a Tool of …

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Inflation as a Tool of the Radical Left

9 days ago

“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch its currency….Lenin was certainly right. There is no subtler, no surer way of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side …

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Sound Money Is Key to Defending Our Liberties

24 days ago

The title of this article epitomizes what the Austrian economist Ludwig von Mises (1881–1973) called the “sound money principle.” As Mises put it: The sound-money principle has two aspects. It is affirmative in approving the market’s choice of a commonly used medium of exchange. It is negative in obstructing the government’s propensity to meddle with the …

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Gold Prices Show There’s a “Big Short” Going on in Official Currencies

August 22, 2020

A rising price of gold and silver in US dollars, euros, Chinese renminbi, Japanese yen, etc. means this:  the higher the price of this precious metal, the lower the exchange value of official currencies. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “Gold Prices Show There’s a …

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Gold Prices Show There’s a ‘Big Short’ Going on in Official Currencies

August 14, 2020

On August 4, 2020, the price of gold surpassed $2,000 per ounce, currently trading around an all-time high of $2,050 per ounce. While one may say that the price of gold is on the rise, it would actually be more meaningful to say that the purchasing power of the world’s fiat currencies vis-à-vis gold is on the decline, because this is what a rising price for gold and silver in, say, US dollars, euros, Chinese renminbi, Japanese yen, or Swiss francs really stands for: The higher the price of this precious metal, the lower the exchange value of official currencies.

Gold isn’t just a good like any other. It is special: it is the “ultimate means of payment,” the “base money of civilization.” Monetary history bears this out: whenever

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New Opportunities for Marxists: Climate Change and Coronavirus

July 24, 2020

Every economic system is a mixture of market action and state control. The Marxist strategy is to blame every ill caused by state intervention on capitalism.  This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “New Opportunities for Marxists: Climate Change and Coronavirus​”.

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New Opportunities for Marxists: Climate Change and Coronavirus

July 23, 2020

In The Communist Manifesto (1848) Karl Marx (1818–83) and Friedrich Engels (1820–95) predicted that capitalism would lead to the impoverishment of the laboring class. Why? Well, to raise profit on capital invested, Marx and Engels argued, entrepreneurs (the capitalists) would exploit the workers. They would reduce wages and worsen working conditions by, say, increasing working hours. From that viewpoint, Marx and Engels put forward an immiseration theory of capitalism.
Worker “Exploitation”
Marxists would not argue that workers’ wages would decline in absolute terms, but certainly in relative terms: the wage incomes of the many would rise less than the incomes of the capitalists, thereby making the former poorer compared to the

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New Opportunities for Marxists: Climate Change and Coronavirus

July 22, 2020

In The Communist Manifesto (1848) Karl Marx (1818–83) and Friedrich Engels (1820–95) predicted that capitalism would lead to the impoverishment of the laboring class. Why? Well, to raise profit on capital invested, Marx and Engels argued, entrepreneurs (the capitalists) would exploit the workers. They would reduce wages and worsen working conditions by, say, increasing working …

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Why Governments Hate Currency Competition

July 10, 2020

There are some reasons to be optimistic about the future of free market money. On the other hand, the world’s governments will fight true currency competition every step of the way. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “Why Governments Hate Currency Competition”.

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Why Governments Hate Currency Competition

July 1, 2020

Introduction In this article, I would like to accomplish two goals: First, I want to explain what money is (and what it is not). I will argue that money is the medium of exchange, and that this is the only function of money. Second, I will point out why the size of the money supply does not matter …

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Governments Have Crippled the World’s Economies. Revolution May Soon Follow.

June 9, 2020

The world seems to be on fire. A couple of months ago, the economic upswing was still firmly established, production expanded, and unemployment was declining. It all changed with the advent of the coronavirus or, to be precise: things turned really sour with the politically dictated lockdowns. As a reaction to the spread of the virus, governments in many countries ordered shops and firms to shut down and people to stay home. The inevitable result was a close to complete breakdown of the economic system. Hundreds of millions of people were thrown into outright despair; in India alone 120 million workers lost their jobs in April 2020.
The economic collapse sent the unbacked paper money system into a tailspin. Borrowers were unable

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How All That Extra Stimulus Money Could Lead to Price Inflation

May 7, 2020

More money creation doesn’t necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “How All That Extra Stimulus Money Could Lead …

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How All That Extra Stimulus Money Could Lead to Price Inflation

May 6, 2020

In an effort to “fight” the consequences of the politically orchestrated “lockdown,” the Fed pumps vast amounts of money into the economy. It injects base money into the banking system. It also monetizes outstanding debt and finances the US administration’s deficit spending policy by issuing new money. This not only increases “excess reserves” in the …

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The Destructive Effects of the Coronavirus Relief Package

April 25, 2020

Governments and their central banks have put together mega–bailout packages. In the US, President Donald J. Trump has signed off on a $2 trillion “virus relief package” amounting to around 10 percent of the US gross domestic product. It is meant to provide massive financial support—in the form of loans, tax breaks, and direct payments—to large and small businesses as well as individuals whose revenue and income have been destroyed by the politically dictated “lockdown.”
What is more, the US Federal Reserve (the Fed) has provided a colossal “backstop” to financial markets. It injects ever higher amounts of central bank money into the financial system by buying up all sorts of credit instruments—not only government bonds, but also

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The Destructive Effects of the Coronavirus Relief Package

April 23, 2020

Central banks are at the heart of government mega–bailout packages. Their ongoing expansion of the money supply won’t end well. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “The Destructive Effects of the Coronavirus Relief Package”

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The Destructive Effects of the Coronavirus Relief Package

April 23, 2020

Listen to the Audio Mises Wire version of this article. Governments and their central banks have put together mega–bailout packages. In the US, President Donald J. Trump has signed off on a $2 trillion “virus relief package” amounting to around 10 percent of the US gross domestic product. It is meant to provide massive financial …

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Why This Bubble Economy Keeps Going and Going

April 13, 2020

Current global bailouts may put off global busts for quite some time. But they will weaken output and employment gains. People’s standard of living will stagnate or even fall, even in the short term. With this comes impoverishment and perhaps even social unrest. Narrated by Daniella Bassi. Original Article: “Why This Bubble Economy Keeps Going …

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Why This Bubble Economy Keeps Going and Going

April 13, 2020

Listen to the Audio Mises Wire version of this article. Quite a few people may wonder why the global fiat money system has not yet collapsed. The fiat money system did not crash in the financial and economic crisis of 2008/2009, when a great many people feared the debt pyramid would come crashing down. And it has not gone …

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With Bailouts, Governments Are the Big Winners

March 24, 2020

The growing concerns about the consequences of the COVID-19 coronavirus have led to a global demand and supply shock: the demand for goods and services has collapsed, and because international production and value chains are now also disrupted, output slows down, and its former level can no longer be maintained. The demand and supply shock brings …

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The Era of Boom and Bust Isn’t Over

January 31, 2020

At the 2020 World Economic Forum in Davos, Bob Prince, co-chief investment officer at Bridgewater Associates, attracted attention when he suggested in a news interview that the boom and bust cycle as we have come to know it in the last decades may have ended. This viewpoint may well have been encouraged by the fact …

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The Wealth Redistribution Scam that Is “Inflation”

December 24, 2019

The world over people are told that central banks pursue “price stability” by making sure that consumer goods prices do not rise by more than 2 percent per annum. This is, of course, a big sham. If the prices of goods rise over time, it does not take that much to understand that prices do …

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Hyperinflation, Money Demand, and the Crack-up Boom

December 14, 2019

In the early 1920s, Ludwig von Mises became a witness to hyperinflation in Austria and Germany — monetary developments that caused irreparable and (in the German case) cataclysmic damage to civilization. Mises’s policy advice was instrumental in helping to stop hyperinflation in Austria in 1922. In his Memoirs, however, he expressed the view that his …

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Why this Boom Could Keep Going Well Beyond 2019

December 7, 2019

The Austrian business cycle theory offers a sound explanation of what happens with the economy if and when the central banks, in close cooperation with commercial banks, create new money balances through credit expansion. Said credit expansion causes the market interest rate to drop below its “natural level,” tempting people to save less and consume …

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