Thursday, 21 September 2017

Monthly Archives December 2010

“The Fed’s Contrarian Has A Wary Eye on the Past”

Posted by Tom Duncan
December 6, 2010
in Blog

“Mr. Hoenig’s latest, loudest objections, aimed at the Fed’s risky $600 billion infusion into the markets to reinvigorate the economy, have made him a champion of the Fed’s critics in Congress, on Wall Street and among business leaders, who, like Mr. Hoenig, fear that the central bank is risking runaway inflation, asset bubbles and a […]

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“Bernanke: China ‘Risking Inflation’ With Currency Policy”

Posted by Tom Duncan
December 6, 2010
in Blog

“Federal Reserve Chairman Ben Bernanke said China is “risking inflation” in its own economy, while threatening other nations, by not allowing its currency to appreciate. In an interview with CBS’s “60 Minutes” posted on the program’s Web site, Mr. Bernanke said China’s policy was “not even in their own interest” in addition to hurting others. […]

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Why Do We Have a Central Bank?

December 6, 2010
in Blog

by Gerald P. O’Driscoll, Jr. Why do nations have central banks? Countries have developed without one, and sophisticated financial systems have evolved in their absence. Some countries with a central bank have suffered for having one. Zimbabwe comes to mind. The Federal Reserve System was created by an act of Congress only in 1913. It […]

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“Rand Gains Fifth Day as Bernanke Says Further Stimulus Possible”

Posted by Tom Duncan
December 6, 2010
in Blog

“South Africa’s currency appreciated as much as 0.3 percent to 6.8530 per dollar and traded at 6.8550 by 9:35 a.m. in Johannesburg, from a previous close of 6.8760. Against the euro the rand added 0.4 percent to 9.1563. … The rand has surged 37 percent since the start of last year as interest rates in […]

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“Fed Won’t Raise for Years Amid Slow Payrolls Growth, Gross Says”

Posted by Tom Duncan
December 3, 2010
in Blog

““Ultimately, the low interest rate and the negative real interest rate is a serious detriment to savings,” Gross said. “During periods of time like this in which governments are forced to move to extraordinary measures, it’s the saver that basically fronts a lot of the costs. That’s just not mom and pop. It’s the Pimcos […]

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“The Role of International Law in Monetary Affairs”

Posted by Tom Duncan
December 3, 2010
in Blog

“Monetary affairs have been a stronghold of national sovereignty, and international law is poorly developed in this field, which has been characterized by informal coordination. This article explores the theoretical underpinnings of monetary competition and the potential role of international law in framing such competition beyond institutional arrangements. We argue that, so far, the most […]

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“Domestic Inflation Versus International Solvency” – Gary North

Posted by Tom Duncan
December 2, 2010
in Blog

“The nation which indulges itself with an inflationary “boom” inev itably faces the economic conse quences: either runaway inflation or a serious recession-depression. If the inflation should cease, unem ployment will increase, and the earlier forecasts of the nation’s entrepreneurs (which were based on the assumption of continuing inflation) will be destroyed.4 Since no political […]

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“Fed Official Urges More Stimulus”

Posted by Tom Duncan
December 2, 2010
in Blog

“Ballooning U.S. debt is a serious long-term threat, but the economy needs more stimulus now, a top Federal Reserve official said Wednesday. Fed Vice Chairwoman Janet Yellen said she supported the Federal Reserve’s latest move to stimulate the still-tepid recovery by purchasing long-term Treasuries to drive down interest rates. She also called for more stimulus […]

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“Inflation in One Page” – Henry Hazlitt

Posted by Tom Duncan
December 1, 2010
in Blog

“Prolonged inflation never “stimulates” the economy. On the contrary, it unbalances, disrupts, and misdirects production and employment. Unemployment is mainly caused by excessive wage rates in some industries, brought about either by extortionate union demands, by minimum wage laws (which keep teenagers and the unskilled out of jobs), or by prolonged and over-generous unemployment insurance.” […]

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“Can the Fed Become Insolvent?”

Posted by Tom Duncan
December 1, 2010
in Blog

“In light of Bernanke’s plans to purchase $600 billion of longer-term government debt, many academic economists are beginning to worry: Could the Federal Reserve itself become insolvent? In this article I’ll explain these fears and I’ll argue that the Fed, with its printing press, cannot really go bankrupt the way other corporations can. However, if […]

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“What food inflation looks like through the lense”

Posted by Tom Duncan
December 1, 2010
in Blog

“The question of China’s artificially low interest rates and currency and its effects on economies will be left for another day. However, we would like to call your attention to the always interesting China Hush pictorial on what 100 yuan (~$15) will buy you at the grocery store today compared to a year ago. Since […]

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“Totally Standard Hyper-Inflation”

Posted by Tom Duncan
December 1, 2010
in Blog

“Sure, buying and selling government debt in the open-market is how central banks control short-term interest rates. That’s why the Fed Funds rate is a target, and the actual outcome in the marketplace is instead known as the Effective Fed Funds. Bidding short-term bills higher (or lower) in price, the New York Fed thus pushes […]

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