Author Archive for Thorsten Polleit

Ludwig von Mises’s ‘Erinnerungen’ Is Back in Print

31q5pvH6REL._Ludwig von Mises’s Erinnerungen is back in print! Publisher Lucius & Lucius, Stuttgart, has produced a very nice format, including a foreword written by yours truly.

This German-language book is available on Amazon here, and is from Mises’s original manuscript, written in German.

English-language readers will know this book as Memoirs or Notes and Recollections.

[From Guido Hülsmann's foreword to the 2009 English version (written prior to the completion of Last Knight of Liberalism):

"Much if not most of what we know is based on the present autobiographical recollections, which Mises started to write upon his arrival in the United States in August 1940. By the end of that year he had finished a first draft of the German-language manuscript and then polished his memoirs for another two years. Finally he gave the handwritten text to his wife Margit for custody and eventual publication. In 1978, five years after his death, she published both the German original and an English translation..."]


Blame it on Gutenberg?

As I explained in my Mises Daily article on Friday, on 15 November 1923, German hyperinflation was finally brought to a halt. That was 90 years ago.

This image is titled: “Gutenberg and the billion press”.


The subtitle is: “I never intended this”.

It is taken from the German satirical magazine Simplicissimus, 1923.

It was put out after the terrible and devastating experience with paper money – over which a central bank, the Reichsbank, had full control.

The truth value of the image is unchanged, though, it seems: If you put into place a machine with the capacity to churn out new money without any limit, the machine will do exactly this – like today’s central banks!

Central Banks Make Liquidity Swap Agreements Permanent

4792018730_63f01a9977_oOn 31 October, basically all major central banks have made their already outstanding “liquidity swap agreements”permanent.

According to the Wall Street Journal:

FRANKFURT–Six of the world’s most important central banks have agreed to standing currency swap arrangements until further notice, the European Central Bank said Thursday.

The ECB, Federal Reserve, Bank of Canada, Bank of England, the Bank of Japan and Swiss National Bank announced “their existing temporary bilateral liquidity swap arrangements are being converted to standing arrangements,” the ECB said in a statement. Those arrangements would remain in place until further notice.

The deal comes after the ECB struck a three-year currency swap deal with the People’s Bank of China earlier this month. That swap arrangement will guarantee euro zone access to as much as 350 billion yuan ($57.1 billion). The PBOC will be able to tap EUR45 billion from the euro-zone’s central bank.

Swap lines enable central banks to deliver specific currency funding to banks, businesses and other institutions in their jurisdiction during times of market stress.

Under liquidity swap agreements central banks effectively lend each other their national currencies (in unlimited quantities) if needed.

In fact, liquidity swap agreements help commercial and investment banks to obtain foreign currency financing at most favorable terms.

In other words: It is an instrument to subsidize the banking apparatus, and an attempt to make banks churning out ever greater amounts of credit and fiat money.

Central banks are turning up the heat toward an outright inflation policy.

The Fed has actually produced a an education (read: propaganda) film on why liquidity swaps are “in the US national interest”:

Photo source