Tag Archives: Theory of Money and Credit

Lecture 3: Mises’ Theory of Money and Credit, What Does Cheap Really Mean?



To be long gold is, in a grand thematic way, to be short the socialization of risk –James Grant

Listen first econ400_lecture3 as you view these: 2012 1Q Mises on Money and Banking Lecture 3.  Then read the chapters along with the study guide: CHAPTER 3. Supplements to the chapters: Chapter 3 Sanchez Supplement to the Readings

Extra Credit

Take the quiz: Quiz Lecture 3 on Chapters 5 and 6 in Money and Credit


What Does Cheap Really Mean?


Everyone tells you that they want to buy cheap stocks. What does that mean? There are so many metrics out there: price to sales, price to book, price to earnings or cash flow. Which are the key ones?

I think people get caught up too often looking at a few key metrics and they lose sight of the bigger picture. In the end, most little companies never become the next General Electric. They either burn out, they hit some plateau and stagnate, or they get acquired by a larger company. When thinking of smaller companies, you really need to ask yourself; what will this company be worth a few years from now and what will a much larger company pay for this business? Remember, acquisitions create cost savings and synergies. For this reason, an acquirer is likely to pay a lot more for a company than the broader market is willing to.

This leads to a bigger question; do this year’s earnings even matter? Probably not. Most people know roughly what this year’s earnings will look like. They even have a reasonable guess about next year’s earnings. No one knows what will happen in three or five years. That’s where you should focus your attention. Look for businesses that can earn many times what they are going to earn this year. Look for growth.

….read more: What Does Cheap Really Mean

Is this company cheap? EGD-FinancialStmt-2012 and research here: http://www.energold.com/s/InvestorVideo.asp



Lecture 2 of Mises on The Theory of Money and Credit; POW Camp Currency

Money in decline

The dollar has lost approximately 95% of its purchasing power since the inception of the Federal Reserve. The last 5% will be brutal–Chicago Slim

A Must Read on Correlations, bubbles, gold and gold equities: http://www.hussmanfunds.com/wmc/wmc130415.htm

Lecture 2 of 9

Audio Lecture econ400_lecture2 used with 20121QMisesonMoneyandBankingLecture2.ppt

then read CHAPTER 2 (includes study guide) APPENDIX B

Test your comprehension:Lecture 2 Notes and Quiz

Supplementary Material: POW Camp Currency:

POW Camp_Radford  (A must read)

PS: On Sale-Gold and precious metal miners (those that are well-funded and have low market caps to reserves and production) will be on sale today at almost historical prices relative to gold and gold relative to monetary mayhem. Your editor will be puking AGAIN on his computer to try to add ever so gingerly into the bloodbath.   We are seeing the extinction of the Goldbug.  Pray for me or STOP ME BEFORE I BUY AGAIN.  Before you think I am crazy–which is a definite possibility–look at Energold.

Lecture One on Mises Theory of Money and Credit

Theory of

Below is the first lecture on chapters 1 & 2 of Mises’ magisterial work, The Theory of Money and Credit. Anyone can understand this work, but they must grasp thoroughly each concept and think through the implications of what Mises is saying. For example, if you understand Mises’ concept of the Subjective Theory of Value, then any theory that teaches that money measures economic value, or that any government should establish policies that preserve the value of money because money is a measure of value, is anti-Misesian.  Therefore, the call for government-licensed monopolistic central bank, is an anti-Misesian call for government intervention into the economy. And there is no measure of economic value, therefore, the government’s consumer price index is meaningless and misleading.

Money transmits value, Mises taught, but money does not measure value. (What?).  Subject valuation “arranges commodities in order of their significance; it does not measure its significance.”

OK, so if you want to delve into the greatest treatise on Money and Credit and become a better investor then I suggest you FIRST LISTEN to the lecture while looking at the Lecture Slides, THEN read the chapters which include the study guide for each chapter. Both the book and study guide are below. Also Gary North’s book, Mises on Money is another excellent study guide incorporating some of Mises’ other works like Human Action.

If folks want me to post more lectures (AFTER) you have listened to lecture one, then let me know in the comments section because it takes time to post the other eight lectures). Or tell me NOT to post more lectures.

Course Outline

2012 1Q Mises on Money and Banking Lecture 1 (Slides on readings)

econ400_lecture1 (MP3)  Lecture- 90 minutes



Quiz 1 on Mises Theory of Money and Credit_Ch 1 and 2

Books and Study Guides

Mises on Money and Credit_BOOK

STUDY GUIDE to_Money and Credit

Mises on Money_Vol_3 by Gary North

Lessons for the Young Economist  (for beginners)