Wednesday, 13 December 2017

Monthly Archives September 2010

“Rising Gold Prices Affect Local Companies”

Posted by Tom Duncan
September 30, 2010
in Blog

“In financial circles, analysts credit the rising price of gold to an unlikely duo: investors seeking shelter and central bankers from India, Bangladesh and other developing countries. Both are wary of a falling dollar. It starts with low interest rates. Central banks usually hold currencies from the world’s largest economies — dollars, pounds and yen […]

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The Dollars Demise?

Posted by Tom Duncan
September 29, 2010
in Blog

“Robert Wenzel has recently started the EPJ Daily Alerts. I try to check it out everyday; it reassures me to know Wenzel is out there, scouring the internet for new developments. (He’s not paying me to say that, but he’s also not charging me for the subscription.) In today’s Alert, Wenzel mentioned that the dollar […]

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“Fed Seminar Probes Financial Reform”

Posted by Tom Duncan
September 29, 2010
in Blog

“Describing the financial industry as “hobbled, but moving forward,” Carson acknowledged the need for reform, but cautioned that not enough attention has been given to how to pay for it. ‘The cost of what is envisioned here is absolutely staggering,’ Carson said. ‘The number of people (who need to be) employed to comply with the […]

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Money Mischief: Episodes in Monetary History

Posted by Tom Duncan
September 29, 2010
in Blog

“Nobel Prize-winner Milton Friedman — dubbed ‘the Oliver Stone of economists’ by the Chicago Tribune — makes clear once and for all that no one, from the local corner merchant to the Wall Street banker to the president of the United States, is immune from monetary economics. In Money Mischief, Friedman discusses the creation of […]

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“The Dynamics of Chronic Inflation in Brazil, 1968-1985”

Posted by Tom Duncan
September 29, 2010
in Blog

“This article develops an error-correction model with the aim of analyzing the behavior of prices during a period of chronic inflation in Brazil. The degree of inflationary inertia is estimated, and tests for the importance of disequilibria in the domestic-money, foreign-goods, labor, and domestic goods markets on inflation are carried out.” Read more. “The Dynamics […]

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“Does Inequality Cause Inflation? The Political Economy of Inflation, Taxation and Government Debt”

Posted by Tom Duncan
September 29, 2010
in Blog

“The optimal revenue mix is tilted more towards seigniorage if the ruling political party has less of a dislike for inflation, if the costs of collecting taxes are high and the extent of tax evasion is widespread (cf. Canzoneri and Rogers, 1990), and if the financial system is relatively repressed (e.g., Roubini and Sala-i-Martin, 1992). […]

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“The Lag in Effect of Monetary Policy”

Posted by Tom Duncan
September 29, 2010
in Blog

“First, discretionary policy at times tends to be dominated by goals other than, and even contradictory to, stabilization (for example, pegging bonds yields, halting gold outflows), whereas the automatic framework cannot be so readily exploited for other purposes. Second, the inertia and the political considerations referred to above that inhibit the ready reversal of discretionary […]

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Russia – “Inflation Could Trip New Exchange-rate Crisis”

Posted by Tom Duncan
September 28, 2010
in Blog

“This happy outcome was a result of serious efforts by the Finance Ministry to contain budget expenditure and by the Central Bank to restrain excessive monetary growth. Inflation control became the most important priority for the government because, apart from aiding economic recovery, a low inflation rate allows the Central Bank to keep its nominal […]

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Here Today, Keynes Tomorrow

Posted by Tom Duncan
September 27, 2010
in Blog

“Keynesian ideas seem to pop up time and time again, especially in times of crisis. Keynes himself even sensed the impact his theories were going to have. When Keynes was writing the General Theory he wrote to George Bernard Shaw in 1935, “…you have to know that I believe myself to be writing a book […]

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“Thomas Hoenig is Fed Up”

Posted by Tom Duncan
September 24, 2010
in Blog

“This is Tom Hoenig’s moment, and it’s a strange one. In Washington, he is the burr in Fed Chairman Bernanke’s saddle: the rogue heartland banker who keeps dissenting alone—for the sixth straight time on Sept. 21—to protest the Fed’s rock-bottom interest-rate policy. Hoenig warns that the Bernanke majority is setting the country up for an […]

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Cato Institute’s 28th Annual Monetary Conference on Nov. 18

Posted by Tom Duncan
September 24, 2010
in Blog

Our friends over at the Cato Institute will be hosting their 28th Annual Monetary Conference on November 18. Cato’s 28th Annual Monetary Conference — Asset Bubbles and Monetary Policy — will address a key issue underlying the 2008 financial crisis: Did the Federal Reserve contribute to the crisis by keeping interest rates too low for […]

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“Gold Miners Gain on Fed’s Latest Views”

Posted by Tom Duncan
September 23, 2010
in Blog

“Miners such as Newmont (NEM) and Silver Wheaton (SLW) galloped to new highs on Wednesday, as gold prices reached another new peak in the wake of the Fed’s latest comments. The Federal Reserve on Tuesday indicated that it was prepared to pump fresh cash into the economy. That drove the dollar lower and boosted gold.” […]

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Commitment

Posted by Tom Duncan
September 22, 2010
in Blog

“There’s a difference between interest and commitment. When you’re interested in doing something, you do it only when circumstance permit. When you’re committed to something, you accept no excuses, only results.” – Unknown Today’s Atlas Liberty Café featured a talk by George Mason University professor of economics Peter Boettke. Dr. Boettke gave an interesting lecture […]

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“Repudiate the National Debt”

Posted by Tom Duncan
September 22, 2010
in Blog

“In the spring of 1981, conservative Republicans in the House of Representatives cried. They cried because, in the first flush of the Reagan Revolution that was supposed to bring drastic cuts in taxes and government spending, as well as a balanced budget, they were being asked by the White House and their own leadership to […]

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Art Carden to Speak at Rhodes College, Nov. 17

Posted by Tom Duncan
September 22, 2010
in Blog

The Sound Money project of the Atlas Economic Research Foundation will be sponsoring a lecture on “The Importance of Sound Money” by Dr. Art Carden at Rhodes College on November 17, 2010. “The Importance of Sound Money” Dr. Art Carden Wednesday, November 17 at 7:00pm Orgill Room in Clough Hall (#51) Dr. Carden is an […]

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Devaluing the Dollar

Posted by Tom Duncan
September 21, 2010
in Blog

“The historical episodes of hyperinflation that we know of consisted of rapidly falling money demand alongside rapidly rising money supply. In general terms, what tends to happen is that after many years of persistently high monetary inflation, people begin to anticipate future monetary inflation. That is, people begin to factor the effects of the expected […]

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“Gold Prices Rise Ahead of Fed”

Posted by Tom Duncan
September 20, 2010
in Blog

“Gold prices were continuing their climb to $1,300 an ounce as investors bet on the Federal Reserve announcing another round of quantitative easing on Tuesday. If the Fed decides to buy more government bonds and expand the size of its balance sheet, it means the central bank will also need to run its printing presses. […]

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Capital and Interest: A Critical History of Economical Theory

Posted by Tom Duncan
September 20, 2010
in Blog

“The intentionally limited task to which I intend to devote myself in the following pages is that of writing a critical history of the theoretical problem of interest. I shall endeavour to set down in their historical development the scientific efforts made to discover the nature and origin of interest, and to submit to critical […]

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“The Radical Banking Reform that Would End the Boom and Bust in Banking”

Posted by Tom Duncan
September 17, 2010
in Blog

“We all know what notes and coins are. They allow us to exchange the fruits of our work for the goods of others. When we deposit cash in Bank A – say £100 – we lend this money to the bank. But as soon as you make a deposit it becomes the bank’s. They then […]

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Euro Will Unravel, and Soon — AEI

September 17, 2010
in Blog

By Desmond Lachman AEI Online Tuesday, September 14, 2010 “The outbreak of a sovereign-debt crisis in the eurozone’s peripheral economies has been among the more important developments in the global economy in 2010. Sadly, this crisis will likely intensify in the months ahead as markets increasingly focus on the intractable solvency and competitiveness issues confronting […]

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Principles for Economic Revival — WSJ

September 16, 2010
in Blog

By GEORGE P. SHULTZ, MICHAEL J. BOSKIN, JOHN F. COGAN, ALLAN MELTZER AND JOHN B. TAYLOR America’s financial crisis, deep recession and anemic recovery have largely been driven by economic policies that have deviated from proven fact-based principles. To return to prosperity we must get back to these principles. The most fundamental starting point is […]

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Why Gold? — Cato Journal

September 16, 2010
in Blog

By Alan Reynolds — Alternative monetary systems cannot be evaluated in isolation, but only in comparison with other arrangements. The question “why gold?” thus divides into two other questions. The first is “compared to what?” The second is “why not?”  Criticism of gold usually considers the second question first, as though a superior option was […]

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The Reserve-Currency Curse — WSJ

September 16, 2010
in Blog

By John D. Mueller POLITICAL ECONOMY The Wall Street Journal   Publication Date: September 4, 1986 Since 1971 the world has suffered two great inflations and three recessions. Hopes for a world-wide economic expansion have been interrupted once again, by an economic slowdown and the threat of a trade war. Will the world ever settle down to […]

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“The Political Economy of Crisis Opportunism”

Posted by Tom Duncan
September 15, 2010
in Blog

“Like a river suddenly swollen by the collapse of an upstream dam, the ideological current becomes bloated by the public’s fear and apprehension of impending dangers and its heightened uncertainty about future developments. Bewildered people turn to the government to resolve the situation, demanding that government officials “do something” to repair the damage already done […]

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To the Tea Partiers: End Imperialism, Take the Money Back — Daily Caller

September 15, 2010
in Blog

By Luis Tellez — Increasingly obvious perils of government debt have given rise to public concern, and even alarm. Though some people argue the alarm is exaggerated, there is a growing segment of the population that is thinking long and hard about the future of our country in ways we have not seen before. In […]

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The Gold Standard: The Case for Another Look — WSJ

September 15, 2010
in Blog

By SEAN FIELER AND JEFFREY BELL Washington’s elites are quietly preparing a post-election fiscal compromise that will fund much of President Barack Obama’s domestic spending agenda with huge tax increases. They aim to create a value-added tax and will argue that there is no alternative even though doing so will leave the United States resembling […]

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“Greenspan: Fiscal Stimulus Worked Far Less Than Expected”

Posted by Tom Duncan
September 15, 2010
in Blog

“The former head of the Federal Reserve said fiscal stimulus efforts have fallen far short of expectations, and the government now needs to get out of the way and allow businesses and markets to power the recovery. “We have to find a way to simmer down the extent of activism that is going on” with […]

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Atlas Liberty Cafe with Peter Boettke

Posted by Tom Duncan
September 15, 2010
in Blog

Please join us for September’s edition of the Atlas Liberty Café on Wednesday, September 22, from 10:00 AM – 11:00 AM, at the Cato Institute.  Liberty Café seeks to bring together allies with interests in worldwide issues to (1) share perspectives on global developments, and (2) provide opportunites for networking and discovering synergies. This month’s […]

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“Golden Opportunity for Social Security”

Posted by Tom Duncan
September 14, 2010
in Blog

“The time has come to get our financial situation in order. I’m not talking about the pros and cons of another stimulus or if the Bush/Obama plans “worked” or not, but a more substantive proposal. Let’s get some of our gold back from the International Monetary Fund, monetize it, and put it in the Social […]

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“Regulators Tighten Bank Capital Rules”

Posted by Tom Duncan
September 13, 2010
in Blog

“Global authorities have settled on their punishment for banks’ role in the financial crisis: a future encumbered by the burden of significantly heavier reserves that will impede the impulse to seek profit through excessive risk taking. Senior regulators from 27 countries agreed on Sunday at a meeting in Basel, Switzerland, that lenders should be forced […]

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China’s Real Monetary Problem — WSJ

September 12, 2010
in Blog

REVIEW & OUTLOOK — A bipartisan swarm pounded Treasury Secretary Timothy Geithner on Capitol Hill yesterday for not doing enough to stop China’s supposed money mischief. The sessions made clear that pressure is building to impose punitive tariffs on Chinese goods if the yuan doesn’t appreciate in value. While it’s true that China’s monetary policy […]

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The search for stable prices and the role of gold — CMRE

September 12, 2010
in Blog

By Prof. Forrest Capie, Official Historian (Bank of England) — How can stable prices be secured so that the economy can be allowed to deliver what it is capable of? There was a time when the question simply did not arise.  Money was tied to gold and stability prevailed. At the present time some monetary […]

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The ritual of sound-bite economics — WP

September 12, 2010
in Blog

By Robert J. Samuelson Monday, September 20, 2010; A15 It is a ritual as predictable as the tides. With every election, we descend into sound-bite economics. Rhetorical claims grow more partisan and self-serving. We are now deep in this process. President Obama’s policies either averted another Great Depression — or have crippled the recovery. These […]

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The German Miracle: Another Look

September 10, 2010
in Blog

Earlier this summer George Soros and some leading Keynesian economists criticized what they regarded as Germany’s overly strict fiscal discipline. Yet Germany’s real output expanded at a robust 9% annual rate in the second quarter, while the U.S. economy grew at an anemic 1.6% rate. So is Germany now a role model for how to […]

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“Debt, financial crisis hurt U.S. competitiveness”

Posted by Tom Duncan
September 9, 2010
in Blog

“Government debt and deficits have emerged as a chief concern among developed world economies, as a decline in tax receipts during the recession and an increase in spending on stimulus programs combined to require record levels of government borrowing. Crafting an “exit strategy” – cutting annual deficits without undermining economic growth by doing so too […]

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Prof. James M. Buchanan Is the 2010 Recipient of FSSO’s Lifetime Achievement Award

September 8, 2010
in Blog

Professor Emeritus of Economics at George Mason University and Nobel Laureate James M. Buchanan received the Fund for the Study of Spontaneous Orders’ Lifetime Achievement Award at George Mason University on September 9th, 2010.   The event was co-hosted by Fund for the Study of Spontaneous Orders at the Atlas Economic Research Foundation, Liberty Fund, George Mason […]

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“The Optimal Degree of Discretion in Monetary Policy”

Posted by Tom Duncan
September 8, 2010
in Blog

“How much discretion should the monetary authority have in setting its policy? This question is analyzed in an economy with an agreed-upon social welfare function that depends on the economy’s randomly fluctuating state. The monetary authority has private information about that state. Well designed rules trade off society’s desire to give the monetary authority discretion […]

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“A Comparison of Three Institutions for Monetary Policy When Central Bankers Have Private Objectives”

Posted by Tom Duncan
September 8, 2010
in Blog

“How do different institutional arrangements for the central bank perform when central bankers have private objectives and society’s objectives vary with time? This paper evaluates three benchmark monetary institutions from a constitutional perspective: (i) a contract with an inflation- or monetary target announcement; (ii) an inflation rule, (iii) the laissez faire policy, i.e., the absence of […]

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“Burry of ‘The Big Short’ Bets on Farmland, Gold After Profits on Subprime”

Posted by Tom Duncan
September 7, 2010
in Blog

“Gold is also a favored investment as central banks issue debt and devalue their currencies, he said. Governments haven’t adequately addressed the causes of the financial crisis and may be sowing the seeds for future problems by borrowing, he said. In the U.S., lawmakers showed they didn’t understand how to prevent another crisis when they […]

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How Long Until Financial Reform Kills Small Firms and Drives Big Firms to Hong Kong?

Posted by Tom Duncan
September 6, 2010
in Blog

“This week, financial advisors have been informed of some new disclosure and reporting rules. As expected, the impact of the Dodd/Frank Bill is already foreshadowing a ridiculous amount of additional paperwork – mostly silly work as one of my colleagues would call it. Financial regulation is a double-edged sword and changes were necessary, no arguments […]

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The Economic Principles of America’s Founders: Property Rights, Free Markets, and Sound Money — HF

September 3, 2010
in Blog

Published on August 30, 2010 by Thomas West — Abstract: Although there are many scholarly treatments of the Founders’ understanding of property and economics, few of them present an overview of the complete package of the principles and policies upon which they agreed. Even the fact that there was a consensus among the Founders is […]

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“Dallas Fed Chief Not Keen on Buying Long-term Securities”

Posted by Tom Duncan
September 2, 2010
in Blog

“Fisher said a more pressing problem is that recent fiscal and regulatory policies are not necessarily conducive to economic growth – a message he hears from many business contacts. “The prevailing sentiment is that politicians and officials who craft and enforce taxes and rules have been doing so in a capricious manner that makes long-term […]

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“Ron Paul: Financial Reform Solved Nothing”

Posted by Tom Duncan
September 1, 2010
in Blog

“Just pretending that we can continue with the same monetary policy, the same Federal Reserve system, and all these guarantees sort of concedes that we’re going to have another bubble. If we have regulations and plans for how we distribute these assets later on, it just says that nothing has changed. That’s another reason why […]

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“Fed leaders had varied views on August policy action”

Posted by Tom Duncan
September 1, 2010
in Blog

“Federal Reserve officials were divided at their Aug. 10 meeting over whether they should resume purchases of Treasury bonds and what impact the move could have on the nation’s economy, according to minutes released Tuesday. In the end, the Fed’s policymaking committee elected to reinvest money from maturing mortgage securities in government bonds by a […]

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The Contemporary Relevance of Robert Taft

Posted by Tom Duncan
September 1, 2010
in Blog

“For a conference this coming weekend, I’m reading a fascinating series of radio debates between Senator Robert Taft and Representative T. V. Smith that took place during the late 1930s. In the final installment, Taft is summing up his concerns about the New Deal. At one point he says the following, much of which could […]

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Third Point’s Second Quarter Investor Letter

Posted by Tom Duncan
September 1, 2010
in Blog

“As every student of American history knows, this country’s core founding principles included non-punitive taxation, Constitutionally-guaranteed protections against persecution of the minority, and an inexorable right of self-determination. Washington has taken actions over the past months like the Goldman suit that seem designed to fracture the populace by pulling capital and power from the hands […]

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