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Austrian Economics for investors. Edited by professor and former hedge-fund manager Peter St. Onge, Ph.D., Austrian Investment Monthly takes a clear-eyed look at stocks, bonds, currencies and commodities. Without the Keynesian racket and without the sky-is-falling pessimism.

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When Credit’s Happy, Markets are Happy

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banks-300x218Credit indicators are important in the Austrian understanding of the business cycle. Today we’ll look at one of the more important: bankruptcies.

First, why bankruptcies matter. It seems obvious — bankruptcies come in bad times — but let’s trace out the actual process.

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The Amazing Make-Everything Machine

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crazy-vintage-vending-machines-you-probably-wish-still-existed-today-21-photos-211The job-threatening rise of the machines is an economically illiterate meme that refuses to die. We’re actually probably in the early stages of it, a bull-market in luddism, if you will. Bastiat’s Candlemakers Petititon answered this one long ago, but today I’ll run a little thought experiment that owes it all to good old Bastiat.

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Why is America in a 15-year Slowdown?

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U.S._Fixed_Investment_as_Pct_GDP (1)One of the more interesting economic debates in the past couple of decades is why the economy is slowing down.

Since 2000 per capita GDP growth in the US has been 0.9% per year (SRC: FRED), compared to 2.3% per year in the previous 50 years. This is a big difference: at 2.3% growth we double in wealth every generation. At 0.9% it takes us close to a century to double.

So why the slowdown? Read More →

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