Doctor von Mises said

I was looking at my Quotations folder on my laptop – what earlier generations would have called a Commonplace Book – and saw this entry from a few years ago:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” - Ludwig von Mises, Chapter XX: Interest, Credit Expansion, The Trade Cycle, § 8 : The Monetary or Circulation Theory of the Trade Cycle

Earlier this week, I finished The Lords of Easy Money: How the Federal Reserve Broke the American Economy by Christopher Leonard, which had the effect of moving me from uneasy to scared (Seems like that has happened on a number of topics in the last ten years). It helped confirm my suspicions that our economic options range from difficult choices made 8-10 years ago, to very difficult choices now, to plausible catastrophic outcomes in our lifetimes.

A more in-depth review of the book may be forthcoming for this board but suffice it to say I strongly recommend it for anyone here. Well-informed, neither overly long nor dense.




I am a huge fan of both Ludwig von Mises and of The LOEM, but then I am also an even bigger fan of Lord Keynes. Economics and investment are very complicated.

No matter what happens and who was most presciently and usefully obsessed with the most important questions, it is worth meditating often and deeply on the difference between stable-in-value things, useful but uncertainly valued things, and “tulips are so last year” things when building a portfolio for wealth building and preservation.

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