Author: Tim Sweeney

Booms and Busts, Economics

The Panic of 1837: A Crisis Born from Fractional Reserve Banking, Not Jacksonian Reform

The Panic of 1837 has long been mischaracterized in many historical narratives as the direct consequence of President Andrew Jackson’s destruction of the Second Bank of the United States and the implementation of the Specie Circular. According to this view, Jackson’s opposition to centralized banking destabilized the economy and directly triggered the crisis. However, this interpretation not only oversimplifies a multifaceted economic breakdown but also … Continue reading The Panic of 1837: A Crisis Born from Fractional Reserve Banking, Not Jacksonian Reform

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Principles

Understanding the Difference Between Real and Nominal Values: How Currency Manipulation Affects Inflation and Asset Prices

The distinction between real and nominal values is fundamental to understanding how currency manipulation, inflation, and monetary policies can impact asset prices, purchasing power, and the broader economy. While these terms are often used interchangeably in everyday conversation, they represent very different concepts in economics. This article will explore these differences in detail and explain how central banks’ manipulation of currency values can lead to … Continue reading Understanding the Difference Between Real and Nominal Values: How Currency Manipulation Affects Inflation and Asset Prices

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Banking, Booms and Busts, Economics, Systems of Governance

The Fiat Currency Trap: How Central Banking Distorts Global Wealth and Production

The global economy operates under a fiat currency system controlled by central banking authorities, leading to severe imbalances in capital flows, wealth distribution, and real productivity. As central banks manipulate money supplies and interest rates, investors and speculators are forced to seek out the most profitable currencies for production. This results in artificial economic advantages for certain nations, while others are left struggling—not due to … Continue reading The Fiat Currency Trap: How Central Banking Distorts Global Wealth and Production

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Banking, Booms and Busts, Economics, Gold

The Panic of 1819: America’s First Economic Crisis

The Boom Before the Bust Following the War of 1812, the United States entered a period of rapid economic expansion. A surge in land speculation, fueled by easy credit and an abundance of paper money issued by state and local banks, led to skyrocketing land prices. Farmers, merchants, and speculators eagerly borrowed money to purchase land, believing that values would continue rising indefinitely. This speculative … Continue reading The Panic of 1819: America’s First Economic Crisis

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Banking

The Free Banking System in 18th Century America: A Decentralized Approach to Banking

In the early to mid-18th century, the United States experimented with a decentralized banking system known as the free banking system. This period, which coincided with the rapid industrialization of the nation, allowed individual states to charter their own banks and issue their own banknotes. The system, while facing challenges, played a significant role in fostering economic growth and innovation, ultimately contributing to key societal … Continue reading The Free Banking System in 18th Century America: A Decentralized Approach to Banking

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Banking

The Rise and Fall of the Second Bank of the United States: A Case Study in Monetary Cycles

The Second Bank of the United States (SBUS) was established in 1816 as a solution to America’s financial instability following the dissolution of the First Bank of the United States. While it was intended to regulate the money supply, manage government funds, and stabilize the economy, its existence ultimately led to economic turbulence, political conflict, and its eventual demise. The story of the SBUS provides … Continue reading The Rise and Fall of the Second Bank of the United States: A Case Study in Monetary Cycles

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Banking, Economics, Systems of Governance, War

Central Banking: The Modern-Day King George

The American Revolution was a defining moment in history, sparked by the tyranny of King George III. His oppressive taxation and economic control over the colonies led to widespread resentment and ultimately rebellion. Today, central banking serves a similar function, exerting unchecked financial dominance over nations and individuals. Just as King George imposed excessive taxes without colonial representation, central banks devalue currency through inflation—an invisible … Continue reading Central Banking: The Modern-Day King George

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Banking, Economics, Systems of Governance, War

The Keynesian War Machine: How Governments Use Inflation and War to Escape Debt

Keynesian economics, rooted in the ideas of John Maynard Keynes, promotes government intervention to manage economic fluctuations. Keynesians argue that during downturns, governments should increase spending, even at the cost of deficits, to stimulate aggregate demand. They believe that markets do not self-correct quickly enough due to “sticky” wages and prices, justifying continuous intervention. However, this approach is fundamentally flawed and ultimately harmful to the … Continue reading The Keynesian War Machine: How Governments Use Inflation and War to Escape Debt

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Economics, Systems of Governance

Capitalism with Sound Money vs. Capitalism with Fiat Currency: Why Sound Money is the True Form of Capitalism

Capitalism, at its core, is an economic system based on individual rights, private property, voluntary exchange, and the free market. Over time, however, the monetary systems underpinning capitalism have evolved, with two distinct forms emerging: capitalism with sound money and capitalism with fiat currency. While both may appear to operate under capitalist principles, they differ drastically in how they manage wealth, exchange, and economic power. … Continue reading Capitalism with Sound Money vs. Capitalism with Fiat Currency: Why Sound Money is the True Form of Capitalism

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War

The War of 1812: A Financial Crisis in Disguise

The War of 1812, fought between the United States and the British Empire (along with their respective Native American allies), is often understood as a geopolitical conflict. However, a deeper examination reveals that it was largely a consequence of underlying economic problems, particularly related to the creation and failure of the First Bank of the United States. Far from being merely a struggle for territorial … Continue reading The War of 1812: A Financial Crisis in Disguise

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