Thursday, 19 October 2017

Monthly Archives February 2011

“Same Old Song and Dance” – FEE

Posted by Tom Duncan
February 28, 2011
in Blog

“Friedman, as with the other papers that day, found inflation to be a massive problem. In fact, next to the threat of a third world war, inflation is what he finds to be the most serious threat to the preservation of a free society. Friedman believed the source of inflationary pressure mainly stemmed from calls […]

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“Currency Wars Lose to Inflation Making Emerging Markets Winners” – BW

Posted by Tom Duncan
February 28, 2011
in Blog

“As recently as last month, governments of emerging economies from South Africa to Brazil warned that competitive devaluations might be needed to keep their strengthening currencies from stifling economic growth. Now, talk of currency controls is being abandoned and interest rates are rising as record food prices and oil at $100 a barrel make inflation […]

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“Oil Spike May Drive Fed, ECB Split”

Posted by Tom Duncan
February 28, 2011
in Blog

“The US Federal Reserve and European Central Bank may go their separate ways if Middle East unrest provokes a sustained, inflationary oil price spike. Crude prices creeping back into the triple digits have sparked concern about slower economic growth and will no doubt reignite two long-running monetary policy debates: Should central banks have a single […]

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“Dollar’s Fall Rocks Far-Flung Families” – WSJ

Posted by Tom Duncan
February 25, 2011
in Blog

“The world’s currencies are gyrating, but the strains are being felt beyond financial capitals and corporate boardrooms. Millions of families in developing countries rely on relatives sending dollars, euros and other weakened currencies from abroad to prop up spending at home.” Read more.  “Dollar’s Fall Rocks Far-Flung Families”  James Hookway  Wall Street Journal, February 25, […]

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“Let Them Eat Chips” – O’Driscoll

Posted by Tom Duncan
February 25, 2011
in Blog

“Unfortunately for defenders of Fed policy, today’s paper is filled with stories of rising inflation. In Singapore, consumer price inflation is running at 5.5%. In Vietnam, consumer price inflation is running at over 12%. There are food riots in India. In yesterday’s Wall Street Journal, George Melloan detailed the linkage between economics and turmoil in […]

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“German States Point to Inflation Above ECB Target” – LA Times

Posted by Tom Duncan
February 25, 2011
in Blog

“Inflation sped up in five German states in February, buoyed by soaring energy costs, a sign that price pressures in the euro zone could continue to accelerate above the European Central Bank’s target. Prices in North-Rhine Westphalia (NRW) — Germany’s most populous state — were 2.1 percent higher than a year ago, up from 2.0 […]

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“Making Sense of the Controversy” – FEE

Posted by Tom Duncan
February 25, 2011
in Blog

“The Foundation for Economic Education’s goal from the very beginning was to promote, what Leonard E. Read called, the freedom philosophy. Understanding the principles of economics is a crucial step to understanding why freedom works. The tools of economics can illustrate why many policies have the opposite effect of their stated goals. This is exactly […]

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Say’s Law and Keynesian Economics

February 24, 2011
in Blog

It is reflected in Keynesian economics that the solution to a crisis is to expand aggregate demand. The economy is not producing at its maximum capacity; it is located inside its production possibilities frontier (PPF). Thus, the solution consists in the government making the economy take off again through fiscal spending or stimulus. This approach, […]

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“Inflation – A Blip?” – Adam Smith Institute

Posted by Tom Duncan
February 24, 2011
in Blog

“One of the more durable achievements of the previous Government was the establishment of the Monetary Policy Committee (MPC), whose work – for around a decade – was widely praised. As the recession took hold, the MPC does seem to have been seriously off the pace. The announcement earlier this week that the Consumer Price […]

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“Commodity Money in Colonial America” – Rothbard

Posted by Tom Duncan
February 24, 2011
in Blog

“As an outpost of Great Britain, colonial America of course used British pounds, pence, and shillings as its money. Great Britain was officially on a silver standard, with the shilling defined as equal to 86 pure Troy grains of silver, and with silver as so-defined legal tender for all debts (that is, creditors were compelled […]

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2011 Sound Money Essay Contest Winners

February 24, 2011
in Blog

The Atlas Sound Money Project is proud to announce the winners of its 2011 Sound Money Essay Contest. In its second year, this essay contest aimed to engage students, junior faculty, and policy writers al over the world in thinking about sound money principles with relevance to today’s economic problems.  With the theme “Money in […]

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The Crime Known as Quantitative Easing – Cobden Centre

Posted by Tom Duncan
February 23, 2011
in Blog

“Rather helpfully, on the Bank’s website there is an explanation of how Quantitative Easing was supposed to improve the economy. Quite clearly, the Bank explains that they purchased British Government bonds (gilts) and high quality (investment grade) bonds from private sector companies (banks, pension funds, insurance companies and non-financial institutions). The Bank’s concern was that […]

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“What’s Behind the Currency War?” – Mises Daily

Posted by Tom Duncan
February 23, 2011
in Blog

“In September 2010, a short time before the international financial summit of the Group of Twenty (G20) took place in South Korea, Brazilian finance minister Guido Mantega declared that the world is experiencing a “currency war” where “devaluing currencies artificially is a global strategy.” By announcing the outbreak of a “currency war,” Mantega wanted to draw attention […]

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“Economist, Author Judy Shelton on Monetary Policy in America” – Matt Warner

Posted by Tom Duncan
February 23, 2011
in Blog

“Economist Judy Shelton, author of Money Meltdown and The Coming Soviet Crash, recently wrote A Guide to Sound Money as part of her work co-directing the Sound Money Project for the Atlas Economic Research Foundation (www.atlasnetwork.org). The guide was published with FreedomWorks, which is distributing 100,000 copies to its volunteer network. The Guide explains what […]

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“The Federal Reserve Is Causing Turmoil Abroad” – WSJ

Posted by Tom Duncan
February 23, 2011
in Blog

“China and India blame the U.S. Federal Reserve for their difficulties in maintaining stable prices. The International Monetary Fund and the United Nations, always responsive to the complaints of developing nations, are suggesting alternatives to the dollar as the pre-eminent international currency. The IMF managing director, Dominique Strauss-Kahn, has proposed replacement of the dollar with […]

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Housing America: Building Out of a Crisis

Posted by Tom Duncan
February 23, 2011
in Blog

“About seventy percent of American households own their own homes, and for many their homes represent the majority of their net worth. As evident by the cascading mortgage market meltdown and widespread defaults and financial bankruptcies, housing policy not only affects the quality of community life but also has a direct impact on their economic […]

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“Obama’s Budget and It’s Discontents” – Bloomberg

Posted by Tom Duncan
February 22, 2011
in Blog

“The President’s budget is informed by his belief that government has a strategic role to play in guiding the economy. That means in some cases picking winners and losers and directing capital to individual industries and technologies that have a shot at delivering jobs and economic prosperity. His Republican opponents believe it’s better to let […]

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“Our fiscal paradox: Governments too costly to function” – WP

Posted by Tom Duncan
February 22, 2011
in Blog

“Many governors face more than a spending crisis. They preside over failed systems that have discouraged fiscal restraint and sometimes preferred the interests of state employees to the interests of taxpayers. “The most important changes,” says John Hood of the John Locke Foundation, “will be structural reforms . . . that eliminate the perverse incentives […]

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“Obama’s Louis XV budget full of gimmicks” – Chicago Tribune

Posted by Tom Duncan
February 21, 2011
in Blog

“Classic Obama debt reduction: Add $2 trillion in new taxes, then add another $1 trillion in new spending and, presto, you’ve got $1 trillion of debt reduction. And what of those “painful cuts” Obama is making to programs he really cares about? The catch is that these “cuts” are from a hugely inflated new base […]

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“Inflation Isn’t Temporary” – FT

Posted by Tom Duncan
February 21, 2011
in Blog

“There are two lessons here. One short-term, the other long-term. First, policymakers and investors need to shake off the belief that the current inflation spike is temporary. Even if food and energy costs were to temper in the coming months, core price pressures will still pick up unless growth falters. Therefore, interest rates need to […]

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“Split in Economy Keeps Lid on Prices” – WSJ

Posted by Tom Duncan
February 18, 2011
in Blog

“Goods inflation has outstripped services inflation for long stretches since mid-2007, something that hadn’t happened since the 1970s. For most of the last 30 years, goods prices had been held down, in part, by cheap imports from low-wage countries like China. But recently, China and other developing markets have become huge consumers of commodities, which […]

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“Deja Deflation Fear” – WSJ

Posted by Tom Duncan
February 18, 2011
in Blog

“Alas, consumers cannot choose to pay the “core” price at the grocery store or gas station. They feel the increase in food and energy prices in reduced purchasing power whether or not the Fed cares about those prices. Wall Street may see a “wealth effect” from rising stock prices, but average Americans see a slower […]

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“Liberty Mutual’s Kelly Says Inflation May Rise to 9%” – WP

Posted by Tom Duncan
February 18, 2011
in Blog

“Edmund “Ted” Kelly, chief executive officer of Liberty Mutual Holding Co., talks about the outlook for U.S. inflation. Kelly says inflation may rise over the next five years as the government deficit increases and Federal Reserve policies weaken the dollar. Kelly also discusses Liberty Mutual’s investment strategy. He talks with Carol Massar and Matt Miller […]

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Is Money a Public Good?

February 17, 2011
in Blog

It is a common position in welfare economics that government should let the market work except in those situations where it fails to deliver efficient results. One of those situations is the case of public goods, which are non-excludable in its provision and non-rival in its consumption. Clean air and national security are two common […]

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“More Than Just Greed” – Miron

Posted by Tom Duncan
February 17, 2011
in Blog

“In asking whether the recent financial crisis could have been avoided, the crucial fact is that crises of various flavors have occurred for centuries in countries around the world. Thus, any explanation based mainly on recent factors — subprime lending, derivatives trading, or financial deregulation — cannot be the whole story. A full account must […]

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“Easy Money and the Decapitalization of America” – Cato

Posted by Tom Duncan
February 17, 2011
in Blog

“Federal Reserve monetary policy over the past 15 years or so has produced bubble after bubble,and each bubble (or each group of contemporaneous bubbles) is bigger in aggregate and more damaging than the one that preceded it. Each bubble destroys part of the capital stock by diverting capital into economically unjustified uses—artificially low interest rates […]

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“Economic Outlook: The new Greece” – UPI

Posted by Tom Duncan
February 16, 2011
in Blog

“Budget plans seldom have happy as a starting point. Spending proposed by the White House Monday is certainly no exception. Facing a Republican majority House, the budget sets up a dancing-as-fast-as-we-can scenario, like a Mexican hat dance, in which someone throws the words “budget cuts” in the middle of the floor, then everyone dances around […]

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“Lost in a Maze of Monetary Aggregates” – Mises Daily

Posted by Tom Duncan
February 16, 2011
in Blog

“One of the most important concepts in economic theory is the quantity of money. However, when going from theory to practical application, things get messy. In the real world, it’s not obvious how to count up the amount of “money” in the economy at any given time. Because of this ambiguity, economists have developed several […]

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“The End of Fannie and Freddie” – Anthony Randazzo

Posted by Tom Duncan
February 16, 2011
in Blog

“The Obama Treasury Department‘s new housing reform report comes to the wise conclusion that Fannie Mae and Freddie Mac must be eliminated. The Tea Party and Republicans should be saying, “We can work with this.” The fully privatized mortgage finance system outlined in the report is by far the best way to fix the housing […]

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Ron Paul Monetary Hearing

Posted by Tom Duncan
February 16, 2011
in Blog

On February 9, 2011, Ron Paul held the first meeting of the Domestic Monetary Policy and Technology subcommittee since he became Chairman. The video can be found here, via LewRockwell.com.  Image by Pixomar / FreeDigitalPhotos.net.

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Can Monetary Policy Really Create Jobs? – Vedder

Posted by Tom Duncan
February 15, 2011
in Blog

“Variations in unemployment rates can be explained by changes in the productivity-adjusted real wages received by labor. Other things equal, rises in productivity or prices tend to have the impact of lowering unemployment, as does falling money wages. This implies inflationary monetary policies will increase employment and lower unemployment—the Phillips Curve phenomenon. But consistent inflation […]

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“Ron Paul, opponent of the Fed and fan of the gold standard, a lone wolf no more” – WP

Posted by Tom Duncan
February 15, 2011
in Blog

“Rep. Ron Paul’s feelings about America’s central bank are a matter of public record. An extensive public record: In dozens of congressional hearings over the past four decades, he has ribbed, cajoled, harassed or annoyed any representative or defender of the Federal Reserve brave or unlucky enough to appear before him. ¶ Normally, his interrogations […]

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“Follow the Money” – Jeffrey Bell

Posted by Tom Duncan
February 14, 2011
in Blog

“Freshman Wisconsin senator Ron Johnson, one of the most promising of the new wave of Tea Party-allied Republican legislators, was chosen to give the Republican radio address, delivered just after President Obama’s weekly radio offering, on Saturday, January 29. This was a notable assignment for a freshman because, for a party not occupying the White […]

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“Bill Gross Cuts Government Bond Holdings Again” – WSJ

Posted by Tom Duncan
February 14, 2011
in Blog

“The Pimco Total Return Fund is the world’s largest bond fund, so Bill Gross’ market moves and musings can carry a lot of weight in the markets. Gross is founder and co-chief investment officer of Newport Beach, Calif.-based Pimco. Billy has been griping quite a bit lately about the current policy stance of the Fed, […]

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“Not Just Another Article Espousing the Gold Standard” – Forbes

Posted by Tom Duncan
February 11, 2011
in Blog

“America has what’s known as fiat currency. We now trust in the fallible humanity occupying the Fed and Treasury. Fiat currency has opened the door to any manner of mischief. As John Locke warned, America has left herself exposed to “the inconstant, uncertain, unknown, arbitrary will of . . . man.” Government, unlike gold, is […]

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“IMF Calls for Dollar Alternative” – CNNMoney

Posted by Tom Duncan
February 11, 2011
in Blog

“The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be […]

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Liberty Café Will Feature Sound Money

February 11, 2011
in Blog

Please join us in holding our first Liberty Café of the year, Atlas’s monthly panel discussion, focusing on sound money as a policy issue and on efforts being done by a few organizations in our think tank community in promoting monetary reforms.  It will be held on March 1st,  from 10:30 am – 12:00 pm at Atlas in the conference room […]

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Dollar Based Free Banking: A Possible Road to Sound Money?

February 10, 2011
in Blog

In The Theory of Free Banking (1988), George Selgin offers a monetary reform proposal to go from the actual monetary system based on a monopolistic control of money to a competitive banking system (pp. 164-172). There are different reasons (economic, institutional, political, psychological, etc.) why the return to banking based in a commodity like gold […]

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1836: The Death Of Our 2nd Central Bank – Real Clear Markets

Posted by Tom Duncan
February 10, 2011
in Blog

“When debating the merits of having a central bank, it is important to go beyond the mere dollars and cents of this issue and keep in mind the words of Professor H.W. Brands on the second central bank. “The Bank wasn’t only a bank. It was the arbiter of the nation’s money supply, the bestower […]

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Review of Ron Paul’s End the Fed – FEE

Posted by Tom Duncan
February 10, 2011
in Blog

“Of all the blunders in American history, perhaps the greatest was the decision to put control of money and banking in the hands of a cabal of big bankers operating under the highfalutin title “Federal Reserve System.” Unfortunately, few among us know anything about the Fed, much less have any inkling of how badly it […]

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The Economic Conscience of Our Country – FEE

Posted by Tom Duncan
February 10, 2011
in Blog

“Henry Hazlitt spent his career in journalism promoting the works of the Austrian School of economics. What separated Hazlitt from the rest, and lead Mises to call him our leader, was his understanding of economics. Although he had not been an economist by training or profession, his work proved he understood the economic concepts better […]

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Boudreaux on Monetary Misunderstandings – EconTalk

Posted by Tom Duncan
February 9, 2011
in Blog

“Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts on some of the common misunderstandings people have about prices, money, inflation and deflation. They discuss what is harmful about inflation and deflation, the importance of expectations and the implications for interest rates and financial institutions.” Listen to it here.  Boudreaux on Monetary […]

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“Inflation Expectations: The US Dollar and 10-year Government Bond Yield”

Posted by Tom Duncan
February 9, 2011
in Blog

“On Saturday, Allan Meltzer made the statement that “Inflation is coming.” Like the 1970s, we are in for another bout of high unemployment and inflation, which “flummoxed” the Federal Reserve’s policy committee and created a situation in which ”inflation and unemployment rose together throughout the decade.” The market evidence for this? Commodity and some materials […]

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“Fed Missing Inflation, Should Raise Rates: Rep. Ryan” – CNBC

Posted by Tom Duncan
February 8, 2011
in Blog

“The Federal Reserve should start raising interest rates now in order to head off inflation later, Rep. Paul Ryan told CNBC. Speaking a day before Fed Chairman Ben Bernanke is scheduled to visit Capitol Hill for a congressional hearing on monetary policy, the Wisconsin Republican and head of the House Ways and Means Committee expressed […]

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“Farmland gets pricier in Kansas, elsewhere”

Posted by Tom Duncan
February 8, 2011
in Blog

“The rise in Kansas agricultural land prices appears to be accelerating in response to the incredible jump in the price of many agricultural products since mid-2010. A recent survey by Farmers National Co., a national brokerage for farm and ranch land, showed that non-irrigated crop land in central Kansas averaged $3,000 an acre, up 50 […]

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“Time For Fed to Step Up Its Transparency” – WSJ

Posted by Tom Duncan
February 7, 2011
in Blog

“Among ideas being considered to create more openness: more news conferences with Chairman Ben Bernanke, who last week had a rare question-and-answer session with reporters. But attempts to increase transparency should go beyond monetary policy to include bank supervision. Consider stress tests the Federal Reserve is conducting to decide if big banks can return capital […]

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“Ben Bernanke’s ’70s Show” — WSJ

February 7, 2011
in Blog

“In the 1970s, despite rising inflation, members of the Federal Reserve’s policy committee repeatedly chose to lower interest rates to reduce unemployment. Their Phillips Curve models, which charted an inverse relationship between unemployment and inflation, told them that inflation could wait and be addressed at a more opportune time. They were flummoxed when inflation and […]

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“Bond Market Flashes Inflation Warning” – WSJ

Posted by Tom Duncan
February 7, 2011
in Blog

“The U.S. bond market has begun sending a message that inflation risks are rising and the Federal Reserve may be too slow to act, potentially marking a significant turning point in the economic recovery. In the past week, Treasury-bond yields have jumped to their highest levels since last spring. Yields on 10-year Treasurys surpassed 3.5% […]

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“Why Global Food Price Inflation Really Matters” – Daily Finance

Posted by Tom Duncan
February 4, 2011
in Blog

“Perhaps central bankers are like potted plants, able to subsist on little more than water and sunlight. That would help explain Federal Reserve Chairman Ben Bernanke’s statement Thursday that — rising commodity prices notwithstanding — overall inflation remains “quite low.” As for folks who eat food, well, global food prices hit an all-time high last […]

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“Bernanke Issues Warnings, Accepts No Blame” – New American

Posted by Tom Duncan
February 4, 2011
in Blog

“Federal Reserve Chairman Ben Bernanke’s address to the National Press Club on Thursday was a remarkable blend of hubris, claimed innocence, and warnings. His opening remarks were condescending and patronizing to the journalists assembled: Contemporary economic issues can be highly complex, and few nonspecialists have the time or the background to master these issues on […]

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