No Way Out Central Banks Bubble Machine vs. Mises & OODA Economics
Nov 20, 2025
Frank Shostak, an Austrian economist and founder of AAS Economics, dives into how central bank policies create bubbles through unearned money. He explains the journey of money from barter to fiat and how low-interest rates mislead entrepreneurs into malinvestments. Frank argues that true innovation requires real savings, highlighting that current tech booms mirror past bubble bursts. He connects economic theories to the importance of understanding human choices, urging a reevaluation of government roles and market dynamics.
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Money Creation Causes Bubbles
- Central-bank money creation substitutes "nothing" for real goods and steals from producers by inflating exchange media.
- Bubbles form when new money funds activities that wouldn't exist without the counterfeit currency.
From Gold To Fiat Through Receipts
- Money emerged as the most marketable commodity to solve double coincidence of wants, historically gold.
- Receipts and banking created substitutes that enabled overissue and eventual fiat systems.
Central Banks Maintain The Fraudulent Float
- Central banks exist to prevent bank bankruptcies by managing clearing and printing reserves.
- That daily managed printing institutionalizes a fiat system dependent on continual issuance.
