Minor Issues The Coming Crack Up Boom
Jun 21, 2025
Mark Thornton dives into the economic crisis, emphasizing Ludwig von Mises's concept of the 'crack-up boom.' He explains how reckless money printing masks government bankruptcy, leading to persistent deficits. The stability of the dollar is scrutinized, alongside triggers for potential hyperinflation as confidence wanes. Thornton discusses the need for austerity and interest rate hikes to restore trust in currency. Finally, he analyzes market signals pointing to stagflation or possible reform, painting a sobering picture of the U.S. economy's future.
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Bitcoin vs Gold: A 2025 Market Contest
- Thornton opens with a heads-up on his Bitcoin versus gold contest and notes dramatic market swings this year.
- He contrasts Bitcoin's volatility with gold's role as a risk-off asset and highlights gold's strong YTD performance.
Money Printing Masks Government Insolvency
- The federal ability to print money prevents formal bankruptcy but creates mounting economic distortions and moral hazard.
- Mark Thornton argues this masking of insolvency allows unsustainable spending and burdens future generations.
Mises' Stages Explain Inflation's Progression
- Ludwig von Mises framed inflation as a human, policy-driven process rather than a mere mechanical occurrence.
- Thornton outlines Mises's stages: early benign inflation then diminishing demand to hold money as inflation becomes permanent.
