Von Mises On Capital and Saving

A weakening rand incentivises consumption spending over saving, as it guarantees that consumers will be able to buy less with rands in the future than they could have bought today. Yet savings are needed in order to accumulate capital over time and for an economy to become more productive and grow wealthy and prosper, i.e. […]

Money Supply Growth Stalls Again, Risk for JSE and Economy

Gill Marcus is overseeing a bronco-ride in money supply growth. In May 2012 I warned of looming cyclical downside risks to the economy in the second half of 2012. Price inflation was in the process of accelerating, while broad money growth was slowing, which is a brutal combination for especially low income workers in the […]

Blowing The Next Bubble: Emerging Economy Government Debt

The central banks of the world are creating what will ultimately be the most devastating bubble of all: a global government bond/debt bubble. Interest rates on offer in developed economies, Switzerland, Germany, UK, France, the US are at or below 0%, which means investors are looking elsewhere to earn returns, which is where emerging economies […]