Peter Francis Fenwick

This blog is about sound money. It discusses deficit spending, inflation, interest rates, central banks, and whether gold may soon replace the US$ as the world’s reserve currency. It proposes that we would be more prosperous if we were free to choose our preferred currency, and borrowers and lenders were free to set their own interest rates. Sound money is essential for our liberty and our economic well-being.

Is it possible to create prosperity by printing money? Have the Central Banks found the answer to the Philosopher's Stone? On Tuesday, 1st October 2019, the Reserve Bank of Australia cut the cash rate to 0.75% in order to stimulate the economy. The objective was to reduce the unemployment rate to 4.5% and to increase wages. Over dinner that night, my daughter Kate quizzed me and Frank about how that worked. It turns out that it is not as obvious as Dr. Lowe suggests

We are pleased when the Reserve Bank keeps interest rates on hold at their low, low levels. For we know that low interest rates encourage...

I exhort the politicians and bureaucrats of Europe to think again, to do better. The proposed Greek bailout entails too much intervention...

My mother's generation understood the virtue of thrift, and they knew the importance of saving and investment.