Monday, 24 July 2017

Monthly Archives May 2011

Stateless Money: The Example of Somalia

May 26, 2011

It is a common belief that money and the financial markets are inherently unstable; or that a financial crisis is an easy outcome in the case of a random event (sometimes referred as sunspots). A central bank, along with proper regulation, is what is needed to guarantee the stability of the market. It is true […]

Read More

“Measuring Inflation: The Core is Rotten” – Bullard

Posted by Tom Duncan
May 25, 2011

“Controlling overall inflation is a goal of monetary policy. Measures of overall, or headline, inflation attempt to include changes in the prices paid for a wide variety of goods—that is, what households actually have to pay for their daily purchases. This is a sensible notion of precisely what the central bank can and should control […]

Read More

“Sold Down the River” (SDR)

Posted by Gonzalo Schwarz
May 25, 2011

Merriam-Webster defines sovereignty as: a: supreme power, especially over a body politic; b: freedom from external control – autonomy; and, c: controlling influence. Sovereignty in the first sense, over a “body politic,” can seem to contradict sovereignty in the second two senses, however. For a State to have sovereignty is for an individual within that […]

Read More

“Gold Bubble, Debt Bubble, or Both?” – Seeking Alpha

Posted by Tom Duncan
May 24, 2011

“To begin, the national debt has provoked concern over the stability of US debt. Last month Standard and Poor’s revised its sovereign credit rating of the U.S. in the long-term from stable to negative. Last week the US reached its debt limit, which, justified or not, has perpetuated this anxiety. The cause of these fears […]

Read More

“Ben Bernanke Loses Control of the Fed”

Posted by Tom Duncan
May 24, 2011

“The Fed is blaming the earthquake in Japan for disrupting first quarter global growth, plus droughts and other natural disasters which didn’t help. The problem for Bernanke and his allies on the Fed is that hardly anyone is buying this argument. Most financial analysts, economists, and CEOs are blaming inflation for the global slowdown, and […]

Read More

“The Return of Stagflation” – WSJ

Posted by Tom Duncan
May 24, 2011

“‘Stagflation” is an ugly word for an ugly situation: persistent high inflation combined with high unemployment and stagnant demand in a country’s economy. The term was coined by British politician Iain Mcleod in a speech to Parliament in 1965. We haven’t experienced it here in the United States since the bad old days of the […]

Read More