In physics, the heat death of the universe occurs if all matter is moving apart. If it happens, it will be long after we’re gone. But there’s a troubling move towards the heat death of the economy. There is a diminishing return on debt. CEO Keith Weiner gives a lecture for the Ayn Rand Centre […]
A gold bond is debt obligation that is denominated in gold, with interest and principal paid in gold. As I will explain below, it’s a way for the issuer to pay off its debt in full, and there are other advantages. Sometimes, I find that it’s helpful to show a picture of what I’m talking […]
Understanding the marginal productivity of debt is key to understanding whether the amount of credit created is unsustainable, resulting in the failure of the monetary system and loss of everyone’s savings. Falling Productivity of Debt introduces the idea of the marginal productivity of debt, that is, how much additional GDP is added for each newly-borrowed […]
Communicating about money and finance in today’s culture is a real challenge; you want to inform and enlighten your audience on their level of knowledge—but this makes the use of terms extremely difficult. Ayn Rand Institute President Yaron Brook’s video about deflation demonstrates why. In the video clip, Dr. Brook makes two key points. First, […]
