Saturday, 29 April 2017

Monthly Archives August 2010

The Monetary Theorist From The Little House on the Prairie?

Posted by Tom Duncan
August 24, 2010

“The FEE archives are full of correspondences. Many of these letters contain interesting discussions on the economics, politics, and philosophy of liberty. Shifting through them it becomes clear that those in the liberty movement truly cared about obtaining a better understand of how society works. This letter from Rose Wilder Lane to Leonard Read on […]

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Why QE Could Trigger a Collapse of the Dollar

Posted by Tom Duncan
August 23, 2010
in Blog

“A week ago, the Federal Reserve initiated a new program of “quantitative easing” (QE), with the Fed purchasing U.S. Treasury securities and paying for those securities by creating billions of dollars in new monetary base. Treasury bond prices surged on the action. With the U.S. economy predictably weakening, this second round of quantitative easing appears […]

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“Fed’s Hoenig Says Big Banks Still Benefit From Safety Net”

Posted by Tom Duncan
August 23, 2010

“The largest U.S. banks have an implied government safety net that gives them a lower cost of capital compared to community banks even after a congressional overhaul of banking regulation, Kansas City Federal Reserve President Thomas Hoenig said. “Despite the provisions of the Dodd-Frank Act to end too- big-to-fail, community banks will continue to face […]

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“Fannie Mae and Freddie Mac Reform”

Posted by Tom Duncan
August 20, 2010

“Mr. Geithner cited the possibility of giving Fannie Mae and Freddie Mac an “elegant funeral.” But that wouldn’t mean a government exit from its prominent role in America’s housing market. In fact, it could mean that the government agrees to stand explicitly behind the GSEs’ obligations, while also putting in place a new system designed […]

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“Treasure 10-Year Yields Near 17 Month Low”

Posted by Tom Duncan
August 19, 2010

“The Fed’s purchases today will be its second this week, after it bought $2.551 billion of notes on Aug. 17. The central bank plans to purchase about $18 billion of U.S. debt by the middle of September using the money from principal payments on its holdings of agency debt and agency mortgage-backed securities, according to […]

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“Foreign Lenders: Friends Indeed to a U.S. Treasury in Need”

Posted by Tom Duncan
August 18, 2010

“When the U.S. government wishes to spend more money than it receives as tax revenue, it covers the shortfall by borrowing, and foreign lenders have become increasingly important sources of such borrowed funds. Reliance on foreign lenders is as old as the republic. Indeed, loans from the French and the Dutch proved critical in keeping […]

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