The first panacea for a mismanaged nation is inflation

GIS Statement* by Prince Michael of Liechtenstein

Inflation is a grave economic and social illness. The policymakers and central bankers who colluded in running up excessive public debts and rigging monetary policy to sustain them might silently have been praying for higher inflation rates for quite some time. Finally, they are getting their wish. But for the rest of us, this is terrible news

The danger of inflation was downplayed by central bankers and many economists (source: GIS)

Ernest Hemingway, the famous American writer, was a keen observer of society. In “Notes on the Next War,” he makes this striking observation:

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
Fear of inflation is spreading globally. After an extended period of asset price inflation (during which the concern for general inflation was downplayed), now consumer price inflation is hitting 4 percent in Europe and 5 percent in the United States. A normal monetary policy reaction would be to take liquidity out of the system. Central banks would increase interest rates and minimum reserves. Since the European Central Bank (ECB) and the U.S. Federal Reserve (Fed) are currently financing governments directly by purchasing their bonds – a risky move that is against their statutes – the central bankers could, in theory, also reduce these purchases, which is called “tapering.”

Raising interest rates increases the debt-servicing burden of the overextended countries. But what about tapering? Last week, ECB President Christine Lagarde expressed the policy wryly and clearly: “The Lady is not for tapering.” …

Continue reading -> 
The first panacea for a mismanaged nation is inflation


*GIS is a global intelligence service providing independent, analytical, fact-based reports from a team of experts around the world. We also provide bespoke geopolitical consultancy services to businesses to support their international investment decisions. Our clients have access to expert insights in the fields of geopolitics, economics, defense, security and energy. Our experts provide scenarios on significant geopolitical events and trends. They use their knowledge to analyze the big picture and provide valuable recommendations of what is likely to happen next, in a way which informs long-term decision-making. Our experts play active roles in top universities, think-tanks, intelligence services, business and as government advisors. They have a unique blend of backgrounds and experience to deliver the narrative and understanding of global developments. They will help you develop a complete understanding of international affairs because they identify the key players, their motivations and what really matters in a changing world. Our experts examine the challenges and opportunities in economies old and new, identify emerging politicians and analyze and appraise new threats in a fast-changing world. They offer new ideas, fresh perspectives and rigorous study.

Sustainability: Let business lead the way

GIS Statement* by Prince Michael of Liechtenstein

To achieve development goals, societies across the world will have to balance economic sustainability, social factors and ecological necessities. Already, business is making strong progress on this front. Governments’ role should be to set sensible parameters, but too often gets in the way, trying to spend or economically plan its way toward sustainability.

Businesses are doing a good job balancing the crucial factors for sustainability, but governments often pull the rug out from under them by implementing restrictive regulations or intervening in the market (Cartoon by GIS)

Several years ago, the World Energy Council coined the term “Energy Trilemma” to describe how energy policies – from local to global – would need to balance three factors: energy security, energy equity and environmental sustainability.

The United Nations Sustainable Development Goals, which comprises 17 aims (see box) became the basis for many sustainability programs and are also subject to a three-pronged challenge. Implementing them will require finding an equilibrium between economic sustainability, social factors and ecological necessities.

Globally, however, imbalances are already visible across various regions. In the United States, social factors – under the umbrella of diversity (gender, race, etc.) – have become the priority, though this overlooks some basic needs and ignores cultural traditions across the globe. Europe is strongly focused on the ecological necessities. In some less developed but highly populated areas of the world, reducing poverty and protecting jobs are the top priorities …

Continue reading -> 
Sustainability: Let business lead the way


*GIS is a global intelligence service providing independent, analytical, fact-based reports from a team of experts around the world. We also provide bespoke geopolitical consultancy services to businesses to support their international investment decisions. Our clients have access to expert insights in the fields of geopolitics, economics, defense, security and energy. Our experts provide scenarios on significant geopolitical events and trends. They use their knowledge to analyze the big picture and provide valuable recommendations of what is likely to happen next, in a way which informs long-term decision-making. Our experts play active roles in top universities, think-tanks, intelligence services, business and as government advisors. They have a unique blend of backgrounds and experience to deliver the narrative and understanding of global developments. They will help you develop a complete understanding of international affairs because they identify the key players, their motivations and what really matters in a changing world. Our experts examine the challenges and opportunities in economies old and new, identify emerging politicians and analyze and appraise new threats in a fast-changing world. They offer new ideas, fresh perspectives and rigorous study.

seven-day state mourning held For Princess Marie of Liechtenstein

H.S.H. Princess Marie of Liechtenstein (14 April 1940 – 21 August 2021)

H.S.H. Princess Marie of Liechtenstein, wife of the Ruling Prince Hans Adam II, died on August 21, 2021, in the presence of the family.
After receiving the last sacraments she passed peacefully and with great trust in God. RIP.

The Princess was born as Countess of Kinsky von Wchinitz und Tettau in 1940. 1967 she married the then Hereditary Prince Hans Adam. They have four children, Hereditary Prince Aloys, Prince Maximilian, Prince Constantin and Princess Tatiana.

The commitment to people, generosity and humanitarian activities shaped the work of Princess Marie. She will be deeply missed. The loss of the Princess saddens the family and the Principality of Liechtenstein.

The ECAEF (European Center of Austrian Economics Foundation), Vaduz (LI) expresses its deepest condolences.

Essays in Honor of Terry L. Anderson

On August 14, Terry Anderson was handed a celebratory volume of ‘Save the Environment – Unleash the Markets’ comprising original essays commendable to honor Terry L. Anderson. The content of the book shows the profound international appreciation of Anderson’s seminal academic work in free market environmentalism and his unwavering commitment to private property rights.

Save the Environment – Unleash the Markets. Essays in honor of Terry L. Anderson ...
Save the Environment – Unleash the Markets. Essays in honor of Terry L. Anderson …

The title of the Festschrift reflects well his personal credo:  ‘Save the Environment – Unleash the Markets’. Anderson is a featured speaker at the International Gottfried von Haberler Conferences in Liechtenstein (LI) and the ECAEF/CEPROM Conferences in Monaco (MC). Both internationally renown conference series are organized by the European Center of Austrian Economics Foundation (ECAEF). 

This academic Festschrift was put together by ECAEF with support of the Liechtenstein Academy and the publishing house TvR in Jena.

Christianity, Marxism, and free society

GIS Statement* by Prince Michael of Liechtenstein

Despite the death and destruction wrought by Marxist governments, the ideology is enjoying something of a resurgence these days. As troubling as that is, perhaps even more shocking is the rapid rise in anti-Christian sentiment. Both trends are a danger to freedom, but together, they make an even more alarming mix

Christianity, Marxism, and free society (source: GIS)
Despite the death and destruction wrought by Marxist governments, the ideology is enjoying something of a resurgence (source: GIS)

Marxism has led to more murder than any other ideology in human history. Including the famines brought on by the planned starvation in the Soviet Union (in Ukraine especially) and China (as part of the “Great Leap Forward”) the number of politically motivated killings easily passes 100 million. The purges ordered by Joseph Stalin and Mao Zedong were horrifying, but they were by no means the only such instances. In other communist countries, a tragic amount of blood has been spilled in the name of Marxism. The barbaric regime of Pol Pot in Cambodia, which massacred nearly a quarter of the country’s population, comes to mind.

Both Communism and National Socialism are inhuman ideologies. Besides all of the death they have caused and their use of the term “socialist” to describe their views, they share something else in common: a hatred of Christianity, especially the Catholic Church.

Here it must be noted that although the Catholic Church did have official relations with Nazi Germany, it remained in strong opposition to its policies, especially on race and ethnicity. Many Catholic priests were imprisoned in concentration camps. The official stance of the party and its leadership was fiercely anti-Catholic. The only reason the Nazis did not persecute Catholics more than they did, was because they feared it would weaken the war effort …

Continue reading -> 
Christianity, Marxism, and free society


*GIS is a global intelligence service providing independent, analytical, fact-based reports from a team of experts around the world. We also provide bespoke geopolitical consultancy services to businesses to support their international investment decisions. Our clients have access to expert insights in the fields of geopolitics, economics, defense, security and energy. Our experts provide scenarios on significant geopolitical events and trends. They use their knowledge to analyze the big picture and provide valuable recommendations of what is likely to happen next, in a way which informs long-term decision-making. Our experts play active roles in top universities, think-tanks, intelligence services, business and as government advisors. They have a unique blend of backgrounds and experience to deliver the narrative and understanding of global developments. They will help you develop a complete understanding of international affairs because they identify the key players, their motivations and what really matters in a changing world. Our experts examine the challenges and opportunities in economies old and new, identify emerging politicians and analyze and appraise new threats in a fast-changing world. They offer new ideas, fresh perspectives and rigorous study.