Are We in the Initial Stages of von Mises' Crack-Up Boom?
In this report, I cover the early market action from London on Wednesday, September 4th, 2019. I look briefly at the precious metals, the stock market, the dollar, the bond market and the price of WTI and Brent crude oil.
Today I look into the Austrian School of Economics for hints about what is going on in the monetary and financial system. I will reference Ludwig von Mises' Magnus Opus "Human Action" and in particular what von Mises calls the Crack-Up Boom.
Basically the Crack-Up Boom or Flight into Real Goods is when the general public realises that the government and the monetary authorities will never stop increasing or printing the quantity of money and credit and that triggers a rush away from cash into tangible or real goods as confidence and faith are lost in the currency.
This phenomenon happened in the 1920s in Germany and Austria and is more commonly known as hyperinflation. My opinion is that the rush into government bonds and the advent of negative yields is a symptom that the monetary authorities cannot or never will be able to stop increasing the quantity of money and credit as the market and investors have become addicted to the unconventional policies of the Central Banks.
My conclusion is that we are in the initial stages of von Mises' Crack-Up Boom and that the current drop to new lows of major fiat currencies versus gold is a signal of that development.
Ludwig von Mises: https://mises.org/profile/ludwig-von-mises
Use promo code maneco64 to get a 0.5% discount on physical gold and silver bullion purchases at https://www.goldinvestments.co.uk/
Use promo code MarioGlint79 to save and spend physical gold: Glint app https://glintpay.com/
Support the channel:
https://www.paypal.me/maneco64
https://www.patreon.com/user?u=3730528
BITCOIN: 1AkNoKzbZXJ75BbeGkD2ekUDJQNWDrBgMA
BITCOIN CASH: qzfcsu05c9ephzv8qzl7ysvn4lfclzneescfhre4r5
ETHEREUM: 0xfffd54e22263f13447032e3941729884e03f4d58 LITECOIN: LY6a8csmuQZyCsBZbLDTQMRuyLdsW9g2na
DASH: XhxxKD8YHjAdE3hYG7AuCw4EwUrCjZWqGK
BAT Currency: Uphold a/c name maneco
▶️ DTube
▶️ IPFS