Wednesday, 18 October 2017

Monthly Archives October 2010

“Why the Fed’s bold move won’t work”

Posted by Tom Duncan
October 29, 2010
in Blog

“Critics of the Fed — and even someFed members — point to various unintended consequences QE2, including the possibility of a new asset bubble in financial markets, a return of inflation at painful levels, and even a currency or trade war with U.S. trading partners due to a weakening dollar. But some economists say the […]

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“Regulators Must Get Rules of the Road Right”

Posted by Tom Duncan
October 28, 2010
in Blog

“Americans rely on financial services to help meet their needs: for retirement, education, homeownership and indeed every aspect of their lives…  Will the new rules ensure that the costs of credit remain accessible for businesses and individuals to meet their financing needs? What is the impact of the final rules on companies’ competitiveness when they […]

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“Fear of Currency War Grows as US Dollar’s Value Falls”

Posted by Tom Duncan
October 27, 2010
in Blog

“Is this a currency war or what?… In Washington, where a “strong dollar” has been the mantra for years, policymakers are taking steps that could make the already weak dollar weaker still… The dollar’s decline is being driven by what everyone in global markets is expecting — another round of so-called quantitative easing by the […]

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“America’s ‘Plan’ to Destabilize China”

Posted by Tom Duncan
October 27, 2010
in Blog

“In early October, China’s Premier Wen Jiabao addressed European leaders in Brussels. Ominous talk of currency wars dominated the proceedings. And why not? After all, America — and a growing coalition of forces — has mounted a massive attack on China. And the Americanled coalition’s weapon of choice is the renminbi- U.S. dollar exchange rate. […]

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“Toward a Free-Market Money”

Posted by Tom Duncan
October 27, 2010
in Blog

“Despite the overwhelming evidence that markets perform best when left alone by the government, it is still virtually taken for granted that one consumer product should be completely controlled by every government in the world. One product, so ubiquitous, that it’s used by almost everyone in the world on a daily basis: money. Money is […]

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“Bank Failures in Slow Motion”

Posted by Tom Duncan
October 27, 2010
in Blog

“Every Friday evening a few more banks are closed — seized by the various state banking regulators and handed over to the Federal Deposit Insurance Corporation (FDIC) for liquidation. This all happens rather quietly, barely making the news. We’re told these bank failures are no big deal. No reason to panic. The names of the […]

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“Monetary Theory and the Trade Cycle” – F.A. Hayek

Posted by Tom Duncan
October 27, 2010
in Blog

“It seems certain, however, that we shall merely make matters worse if we aim at curing the deflationary symptoms and, at the same time (by the erection of trade barriers and other forms of state intervention) do our best to increase rather than to decrease the fundamental maladjustments. More than that: while the advantages of […]

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Sound Money at the Liberty Forum! Nov. 10

Posted by Tom Duncan
October 27, 2010
in Blog

In The Constitution of Liberty, F.A. Hayek advised: “All those who wish to stop the drift toward increasing government control should concentrate their effort on monetary policy”. Sound Money will have a special panel during Atlas’s upcoming Liberty Forum on Wednesday, November 10, at 9:00am. The Sound Money session will feature talks by: Judy Shelton […]

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“Surging Inflation Spurs Debt Concern in 2012, Swaps Show: Argentina Credit”

Posted by Tom Duncan
October 26, 2010
in Blog

“The third-highest inflation rate in the world is making investors less confident in Argentina’s ability to keep up economic growth and repay debt beginning in 2012, credit default swaps show. Five-year contracts that protect investors against a default by Argentina cost 123 basis points, or 1.23 percentage points, more than two-year swaps on Oct. 15, […]

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“Fed Asset Buying May Reach $2 Trillion”

Posted by Tom Duncan
October 25, 2010
in Blog

“The Federal Reserve may purchase $2 trillion of assets to stimulate the U.S. economy and start by announcing a fresh round of monetary easing on Nov. 3, Goldman Sachs Group Inc. said. “We expect an announcement of $500 billion or perhaps slightly more over a period of about six months,” Jan Hatzius, the New York-based […]

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“Oil rises to near $81 as traders mull Fed moves”

Posted by Tom Duncan
October 22, 2010
in Blog

“Oil prices rose to near $81 a barrel Friday in Asia, rebounding slightly from the previous session’s steep drop, as traders mull the possible effects of anticipated moves by the U.S. Federal Reserve to spur economic growth.” Read more.  “Oil rises to near $81 as traders mull Fed moves” Alex Kennedy  Businessweek, October 22, 2010. […]

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Liberty Forum and Freedom Dinner, November 9 & 10, 2010

Posted by Tom Duncan
October 22, 2010
in Blog

Join hundreds of freedom’s allies at the world’s largest gathering of free market champions from the United States and around the globe. Atlas’s annual Liberty Forum has become a “must-attend” event for members of the worldwide think tank community. Now in its 10th year and moved to November to complement our annual Freedom Dinner, the […]

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Richard Ebeling to Present at Northwood University – Nov. 2

Posted by Tom Duncan
October 22, 2010
in Blog

Northwood University’s Forum for Citizenship and Enterprise, in partnership with the Atlas Economic Research Foundation, will host a lecture by Northwood University Professor Richard Ebeling on the importance of sound money for a free society. The lecture is titled “Ending Monetary Socialism: Gold, Sound Money, and the Free Society.” The event will be held on […]

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“China Hides Rampant Inflation in Money Binge”

Posted by Tom Duncan
October 21, 2010
in Blog

“When money is created at a faster rate than real economic growth, the result is inflation. Yet so far this year, China’s official statistics show consumer inflation at barely over 3 percent. Those figures have many economists scratching their heads, wondering where the inflation went, while most people in China seem content to believe their […]

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Surprise! China Has Inflation Problems…

Posted by Tom Duncan
October 21, 2010
in Blog

“In order to avoid the global recession that took hold in 2008, China implemented an aggressive stimulus policy. Credit was made plentiful and the inflation machine kept on chugging. The amount of foreign capital attracted to China’s continued growth helped to push prices of real property higher and higher.” Read more.  Surprise! China Has Inflation […]

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“Dollar Sinks Amid Fed Speculation…”

Posted by Tom Duncan
October 21, 2010
in Blog

“The dollar weakened against 15 of 16 major peers, losing at least 1.5 percent versus currencies including the Australian dollar and Swedish krona. The U.S. currency has depreciated more than 3 percent versus all 16 major counterparts since the end of August, falling more than 10 percent versus the euro and Australian dollar, as speculation […]

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“Managed Money” – Alan Reynolds

Posted by Tom Duncan
October 21, 2010
in Blog

“Hypothetical monetary systems always look better than actual experience. Economists therefore view their responsibility as deciding what characteristics money ought to have, then imposing that money on the public. The same economists presumably would not dictate what sorts of shoes we should have, or how many, or one what terms. The question of why economists […]

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“Federal Reserve State of Play”

Posted by Tom Duncan
October 20, 2010
in Blog

“For many, Fed Chairman Ben Bernanke’s speech at the Boston Federal Reserve Bank conference last Friday confirmed expectations that renewed quantitative easing will definitely be approved at the Nov. 2-3 Federal Open Market Committee meeting. “QE2” advocates seized on his comment that high unemployment and low inflation make “a case for further action,” although that […]

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“Politics and the Fed”

Posted by Tom Duncan
October 20, 2010
in Blog

“The threat of politicization hangs over the Federal Reserve Board like the Sword of Damocles. It’s Capitol Hill’s response to the Fed’s proliferation of new programs to unglue credit markets. The Fed’s innovations threaten to create enough acronyms to tax the limits of the alphabet.” Read more.  “Politics and the Fed”  Alfred Tella  The Washington […]

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“The Fed and Politics”

Posted by Tom Duncan
October 20, 2010
in Blog

“Politically oriented monetary policies and business cycles are the inevitable by-products of a central bank, the ultimate favored banking institution which is viewed as a savior by some politicians facing elections. After the elections comes the bill: Inflation runs amuck. The nation goes into a painful recession, or the stock market crashes. Whatever the extent […]

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“100 Percent Reserve Money: The Small Change Challenge” – George Selgin

Posted by Tom Duncan
October 20, 2010
in Blog

“In a free market economy from which fiduciary media are excluded, economic progress will be limited, perhaps severely, by the high cost and correspondingly limited supply of small-denomination money—money that is needed to accomplish retail and other low-value exchanges. Historically, fiduciary token coins have proven to be the only practical means for addressing the small […]

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“How the Fed Is Holding Back Recovery” – David Malpass

Posted by Tom Duncan
October 19, 2010
in Blog

“Whether in Republican or Democratic administrations, the Washington policy consensus for a decade has been “print and spend.” When that doesn’t work, the Washington prescription is to double the dose—more monetary easing and dollar devaluation, and always more government spending. The Fed in particular has become accustomed to subsidizing federal borrowing by holding interest rates […]

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Messynomics and the Troubles with Money – Peter Boettke

Posted by Tom Duncan
October 19, 2010
in Blog

“Money is non-neutral, and the capital structure in an economy consists of combination of heterogeneous capital goods that multiple-specific uses. Once these propositions are included in the analysis, along with other messy aspects of the real world, our understanding of market theory and the price system shifts drastically. Nothing can be treated as given. Everything […]

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“Money and Finance in the Confederate States of America”

Posted by Tom Duncan
October 18, 2010
in Blog

“The Confederacy then turned to debt issue as a means of war finance. The South successfully sold some long-term government securities during the early stages of the war. Bond issues proved a limited source of war financing as Southern prospects diminished, however. Investors increasingly shied away from purchasing securities offered by a government with little […]

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Currency Chaos: Where Do We Go From Here? – Judy Shelton

Posted by Judy Shelton
October 16, 2010
in Blog

‘The most important initiative you could take to improve the world economy would be to stabilize the dollar-euro rate.’Global monetary relations are in disarray. Exchange rates fluctuate wildly among the world’s major trade partners, spawning talk of protectionism and a currency war. Gold is soaring as the dollar slides, and economists debate whether the biggest […]

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Limited Purpose Banking?

October 16, 2010
in Blog

by Jerry O’Driscoll The following is a book review from the Cato Journal, Vol. 30, No. 3 (Fall 2010). Jimmy Stewart Is Dead: Ending the World’s Ongoing Financial Plague with Limited Purpose Banking Laurence J. Kotlikoff (Hoboken, N.J.: John Wiley & Sons, 2010, 241 pp.) Chapter 1 of the book is titled “It’s a Horrible […]

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“Bernanke says Federal Reserve ready to further stimulate the economy”

Posted by Tom Duncan
October 15, 2010
in Blog

“Federal Reserve Chairman Ben S. Bernanke on Friday laid out a case for the central bank to take further action to bolster growth, citing the risks of prolonged high unemployment and a U.S. economy slipping into a deflationary spiral. In a much-anticipated speech in Boston, Bernanke did not spell out details of how and when […]

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Land of Confusion

Posted by Tom Duncan
October 15, 2010
in Blog

I thought that I would offer a run-through of what the government and the Fed have done to help us out during our troubled economic times. It is, of course, not a complete list, but it may be interesting to think about when you ask yourself why the latest recession went so badly.  1) Both […]

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Robust Political Economy and the Fed – Peter Boettke

Posted by Tom Duncan
October 14, 2010
in Blog

“But I wonder if in these discussions of monetary policy in response to the financial crisis the political economy of public policy is not seriously being overlooked. I have in fact raised these concerns before, and while the political economy costs are often acknowledged I don’t think they are fully absorbed into the analysis of […]

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How Fake Money Saved Brazil – NPR

Posted by Tom Duncan
October 14, 2010
in Blog

“This is a story about how an economist and his buddies tricked the people of Brazil into saving the country from rampant inflation. They had a crazy, unlikely plan, and it worked. Twenty years ago, Brazil’s inflation rate hit 80 percent per month. At that rate, if eggs cost $1 one day, they’ll cost $2 […]

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“Why Inflation Matters” – Steven Horwitz

Posted by Tom Duncan
October 13, 2010
in Blog

From our friends at the Mercatus Center: “Although it has yet to make an appearance on the current economic scene, inflation continues to be a ghost that haunts the future of the U.S. economy. The Federal Reserve System has pumped an unprecedented amount of money into the banking system, and the trillions of dollars spent […]

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“Alan Goldspan”

Posted by Tom Duncan
October 13, 2010
in Blog

By Reuven Brenner* Seemingly out of the blue, the U.S. Federal Reserve chairman is hinting at a return to the gold standard. If so, currency markets are in for a shock.  Last month in a speech before the Economic Club of New York, Alan Greenspan praised the gold standard, the first time he has unambiguously […]

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“Dollar Bears”

Posted by Tom Duncan
October 13, 2010
in Blog

“What matters is to have an agreed-upon unit of account in terms of which trading partners could price every contractual agreement, preferably having the medium of exchange serve as the unit of account, too. This anchor is missing in the international monetary system today, and is one reason for the financial havoc surrounding us. The […]

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“It’s the Money, Stupid”

Posted by Tom Duncan
October 13, 2010
in Blog

“At the moment, Republican leaders and policy elites are advancing exclusively fiscal solutions that address only the government response to the economic crisis and not the crisis itself. Fiscal deficits did not create the crisis, and reducing deficits won’t put our economy on a stable footing. From its inception in 2007 right up to the […]

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Witherspoon Institute’s “Human Flourishing, the Economy, and Monetary Reform” – Nov. 3

Posted by Tom Duncan
October 13, 2010
in Blog

With the expansion of the government’s economic responsibilities over the past three years, there has been growing public concern about the economic role of the state and the level of sovereign and private debt. With this in mind, the Witherspoon Institute of Princeton, New Jersey is assembling a group of distinguished scholars – economists, philosophers, […]

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Central Banking, Limited Purpose Banking, Free Banking…

Posted by Tom Duncan
October 12, 2010
in Blog

“But if the problem isn’t in the application of the system, but it is the system, then all efforts to reform practice will fail, and fail miserably. This is what we believe the logic of economic argument leads one to conclude about central banking and government monopoly over the currency. We also believe that the […]

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Peter Lewin to Speak at the University of Texas at Dallas! – Oct. 12 & 14, Nov. 17

Posted by Tom Duncan
October 12, 2010
in Blog

Sound Money at Atlas is happy to announce that Peter Lewin*, will be giving three lectures on “The Austrian Capital Theory and the Business Cycle” at the University of Texas at Dallas.    The dates of the lectures are as follows:   October 12th, 2:30 p.m. UTD School of Management SOM 2.112 October 14th, 11:30 […]

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“Blame Central Banking Not Banks”

Posted by Tom Duncan
October 12, 2010
in Blog

“Too much money leads first to a boom and then a terrible bust. Re-stimulation continues the process and makes economic imbalances worse over time until finally the whole system begins to collapse and something else emerges. We are in a collapse phase currently. The problems begin and end with mercantilist central banks. Absent central banks […]

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Walter E. Williams – “Deregulation”

Posted by Tom Duncan
October 12, 2010
in Blog

Walter Williams, a professor of economics for George Mason University, speaks on the deregulation (or lack-thereof) that led to the financial crisis. The original video can be fond on LibertyPen.com.

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“It’s Time for a 21st Century Gold Standard”

Posted by Tom Duncan
October 11, 2010
in Blog

“No monetary system, including gold, is perfect. But the evidence is that the gold standard is a recipe for lower-than-predicted federal interest rates (quelling the coming fiscal crisis); lower corporate bond rates (jobs); and lower mortgage rates (relief to millions of upside down homeowners). The gold standard sounds picturesque. In reality it is a technical, […]

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“Inflation Cause and Effect”

Posted by Tom Duncan
October 11, 2010
in Blog

“But back to the question of the cause of inflation. Basically when the government increases the money supply faster than the quantity of goods increases we have inflation. Interestingly as the supply of goods increase the money supply has to increase or else prices actually go down. Many people mistakenly believe that prices rise because […]

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“Dishonest Money”

Posted by Tom Duncan
October 8, 2010
in Blog

“If every time we bring the results of the sweat of our brow to market, we are subject to an arbitrary assessment of their worth, either we are suffering from deliberate imposts on the part of the authorities, or we are partaking not in an entrepreneurial risk, but in a capricious lottery in which we […]

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“Dollar Reaches 15-Year Low Versus Yen”

Posted by Tom Duncan
October 7, 2010
in Blog

“The dollar dropped to a 15-year low against the yen and the weakest in more than eight months against the euro amid growing expectations the Federal Reserve will expand credit easing to sustain the U.S. recovery.” Read more.  “Dollar Reaches 15-Year Low Versus Yen on Fed; Euro Strengthens”  Keith Jenkins and Yasuhiko Seki  Businessweek, October […]

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“What’s Wrong with Fed Policy?”

Posted by Tom Duncan
October 6, 2010
in Blog

“Investor reaction to Ben Bernanke’s apparent focus on price indices — jumping into the stock market when he hints that he may not raise rates, and jumping out when they suspect he will — is understandable. These reactions do not imply that investors prefer inflation, but rather that they expect the Fed may be overshooting […]

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“The Fed Is All Wrong About Inflation”

Posted by Tom Duncan
October 6, 2010
in Blog

“To summarize: government programs to support housing have depressed rental prices, which is making core inflation artificially low. And since the Fed uses core CPI as one of its primary inflation gauges, Bianco says the central bank is lulling itself into a false sense of security about inflation.” Read more.  “The Fed Is All Wrong […]

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“The U.S. Dollar and Prosperity: Accidents Waiting to Happen”

Posted by Tom Duncan
October 6, 2010
in Blog

“A lasting solution would be to recognize explicitly that market prices, reflected in the yield curve and gold price have been the most reliable signals of the global demand for dollar liquidity. The daily correlation between gold and the dollar has been in the −0.9 range over extended periods, whereas the correlation coefficient for the […]

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“Monetary Policy and the Business Cycle”

Posted by Tom Duncan
October 6, 2010
in Blog

“From my view, I would welcome the day when the topic of this conference—”Money, Politics, and the Business Cycle”—would become obsolete. Not because there is no relation between money, politics, and the business cycle; there is. But I would welcome the day when we quit trying to use monetary policy to fine tune the economy […]

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“Which is Better: High or Low Inflation?”

Posted by Tom Duncan
October 5, 2010
in Blog

“In addition to encouraging fiscal responsibility on the part of consumers, low but stable inflation (or even deflation) is also good for the long term economy, because it allows producers to know their costs. This predictability allows producers to generate reliable profits which will eventually result in a strong healthy economy. Inflation is bad for […]

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“Why is inflation bad?”

Posted by Tom Duncan
October 4, 2010
in Blog

“Inflation is a process of continuous increase in the prices of most goods and services in a country. This does not necessarily mean that all prices increase. There may be some exceptions, such as computer prices which have actually declined in recent years. Inflation can therefore be described as a persistent general increase in prices.” […]

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“Tea Partiers support audit of Federal Reserve”

Posted by Tom Duncan
October 1, 2010
in Blog

“Though Republican Rep. Ron Paul told The Daily Caller last week that he was worried that “some people have slipped into the Tea Party who are awfully close to being part of the establishment,” on at least one particular anti-establishment issue close to the Texas congressman’s heart — auditing the Federal Reserve — Tea Party […]

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