Booms and Busts

Ralph Waldo Emerson wrote, "Cause and effect, means and ends, seed and fruit, cannot be severed; for the effect already blooms in the cause, the end preexists in the means, the fruit in the seed." And so too, does the bust pre-exist in the boom. In case you are unaware, "business cycles" are created by central banks and fiat (paper) money.

Central banking (the Federal Reserve) is central planning of the economy. If you're a fan of it, chances are you resemble more closely a communist than a free-marketeer, like myself.

You can read more about the Austrian Business Cycle theory (ABC) here.