Wednesday, 13 December 2017

Monthly Archives May 2012

Pre-Fed Panics: Their Causes, Cont’d

Posted by Gonzalo Schwarz
May 31, 2012
in Blog

Earlier we posted a reply, by Dr. Bob Murphy, to an NYT blog post by Dr. Paul Krugman, wherein Murphy criticized Krugman’s interpretation of certain statistics and used work by Dr. Steven Horwitz to buttress his argument. Here Dr. Joseph Salerno takes issue with Dr. Horwitz’ conclusions, and adds his thoughts to the matter. By Joseph […]

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Europeans Ambivalent About the Euro

Posted by Gonzalo Schwarz
May 30, 2012
in Blog

From the Associated Press: LONDON — The debt crisis that has ravaged Europe for the best part of three years has exposed a dislike of the single currency but little desire to abandon it, a wide-ranging survey of public opinion found Tuesday. Pew Research Center’s survey across eight European Union countries, including five members of the 17-country eurozone, indicated […]

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The Impending Bernanke Bust

Posted by Gonzalo Schwarz
May 29, 2012
in Blog

by Michael Pollaro To Austrians, all economic “booms” founded on monetary largesse always end in economic busts, roughly equal in size and intensity to the preceding booms. By distorting interest-rate and price signals and, as a consequence, creating malinvestments that must eventually be liquidated, monetary booms necessitateeconomic busts. This is true regardless of whatever short-term benefits the economy or financial markets […]

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Seeing is NOT Believing at Today’s Fed

Posted by Gonzalo Schwarz
May 29, 2012
in Blog

By GEORGE MELLOAN Federal Reserve Chairman Ben Bernanke’s new policy of openness has much to recommend it, in that it gives the markets information about current and future monetary policy that removes some of the guesswork of years past. But now that traders and investors have better insights into the thinking of Fed policy makers, they […]

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Dear UnSound Money, It’s not me, it’s you…

Posted by Gonzalo Schwarz
May 25, 2012
in Blog

Here at Sound Money we may sometimes leave the impression that we are demanding a Gold Standard. This is not true. We are demanding that people be free to choose their money, like they are free to choose their other market relationships (We know, there are very few free market relationships left, but you get […]

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Gold and The Central Banks: The Game Theory

Posted by Gonzalo Schwarz
May 24, 2012
in Blog

“Collectively, the central bankers of the world might agree that they do not want gold to be remonetized. Individually, it is in their interest to defect from this consensus. As the American Century decays, individual motivations tend to become more prominent. You and I are not in a free market – but the central banks […]

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Alasdair Macleod: All Roads In Europe Lead To Gold

Posted by Gonzalo Schwarz
May 24, 2012
in Blog

Submitted by Chris Martenson This week we bring back Alasdair Macleod, publisher of Finance and economics.org, because, as he puts it “every horror that we discussed last time we spoke is coming about”. Especially scary since our previous conversation with him was less than three weeks ago… Today’s interview continues building on his excellent synopsis from last month that detailed the […]

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Paul Krugman Bashes the Fed…

Posted by Gonzalo Schwarz
May 23, 2012
in Blog

…just not on purpose. by Robert P. Murphy In a few recent blog posts, Paul Krugman used bar graphs and tables to (allegedly) prove the superiority of his views over those of the Austrians. Yet, as I’ll show in this article, I can use Krugman’s own data to demonstrate the exact opposite. Krugman on the Fed […]

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Can We Get Inflation AND Deflation at the Same Time?

Posted by Gonzalo Schwarz
May 23, 2012
in Blog

Submitted and © by Keith Weiner of the New Austrian School of Economics Dollar Backwardation The current financial crisis, may progress to a phase where people demand and hoard dollar bills but take electronic deposit credits only at a discount which increases until electronic deposit credits are repudiated entirely.  The Federal Reserve would be powerless […]

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Regulatory Capture 101

Posted by Gonzalo Schwarz
May 22, 2012
in Blog

We get tired (sometimes) of repeating ourselves here at Sound Money, but an important lesson about the difference between voluntary exchange under contract law (free market) versus involuntary transfers under bureaucratic administration with legal immunity (government market) is that when the free market offers a product that is deficient it finds no buyers and disappears, […]

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National Lampoon’s European Currency

Posted by Gonzalo Schwarz
May 22, 2012
in Blog

Once again, for your viewing pleasure, we present Nigel Farage. Here is he speaking of Greece, human dignity, and the breakup of the Euro. h/t zerohedge.com image: flickr.com/constantine-graphics

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JPMorgan Chase and Central Banking

Posted by Gonzalo Schwarz
May 21, 2012
in Blog

by Frank Shostak On Friday, May 1, 2012, JPMorgan Chase said it suffered a $2 billion trading loss. Some commentators have suggested that the huge loss emanates from so-called proprietary trading or placing risky bets using the bank’s money. The loss raised the credibility of the Volcker rule, which restricts banks from trading their own money. […]

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Wall Street Bull

Posted by Gonzalo Schwarz
May 21, 2012
in Blog

The fiat money laundered into the economy by the Federal Reserve System has to be injected somewhere. The stock market is often used as an indicator of the health of the economy, but are most of the gains merely reflecting Cantillon effects? The intertwined and symbiotic relationship between the government and the largest firms and […]

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Precious Metals Market Manipulation?

Posted by Gonzalo Schwarz
May 18, 2012
in Blog

   by Doug Casey For many years now, a meme has been floating around that the prices of gold and silver are being manipulated, which is to say suppressed, by various powers of darkness. This is not an unreasonable assertion. After all, the last thing the monetary powers-that-be want is to see is the price of […]

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Are We Waking Up?

Posted by Gonzalo Schwarz
May 17, 2012
in Blog

In some of the most encouraging news to come out of the endless War on Financial Sanity being waged by Western governments, it seems that people are beginning to wake up to the fiat money scam. Greeks are pulling their money out of banks (though still woefully unaware that pulling out fiat money from banks […]

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Gold Tells the Truth

Posted by Gonzalo Schwarz
May 17, 2012
in Blog

    One of gold’s greatest powers is that it is a unit of account which cannot be fudged nearly as easily as the fiat all-you-can-print buffet. Feel like your wages are buying less in real terms? They are: Feel like your dollar is buying less, even though the financial press claims that the dollar […]

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Krugman’s Misreading of US Banking History

Posted by Gonzalo Schwarz
May 16, 2012
in Blog

by Steve Horwitz  In his NY Times column Sunday, Paul Krugman tries, in vain, to construct a case for bank regulation in light of the problems at JP Morgan. As usual with Krugman, there’s much to disagree with, but I want to focus on his utterly ham-handed version of the history of US banking, which bears shockingly […]

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Returning to a Gold Standard System: Why and How?

Posted by Gonzalo Schwarz
May 16, 2012
in Blog

by Nathan Lewis The answer to Why? is: because gold-linked stable money is superior to manipulated funny money. The answer to How? has two subsections. The first is: How to maintain a gold standard system? The second is: How to transition to a gold standard system?The answer to “how to maintain a gold standard system” is to understand the process of […]

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The Golden Rule Reinterpreted

Posted by Gonzalo Schwarz
May 15, 2012
in Blog

  by Peter Schiff In an April speech in Berlin, Dr. Andreas Dombret, a member of the Executive Board of the Deutsche Bundesbank (the German central bank), offered a startlingly frank assessment of the current problems in Europe. Although his comments were meant to apply to the tensions and imbalances that exist between the northern […]

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Forbes and Rogers on Real Wealth

Posted by Gonzalo Schwarz
May 15, 2012
in Blog

Creator of the RICI Index, noted author and global investor Jim Rogers is worried about U.S. debt and the dearth of up-and-coming farmers, but still has faith in America’s future. He speaks with Steve Forbes in this latest edition of “Intelligent Investing With Steve Forbes”. image: flickr.com/worldeconomicforum

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Our Central Bankers are Intellectually Bankrupt

Posted by Gonzalo Schwarz
May 14, 2012
in Blog

by Ron Paul The financial crisis has fully exposed the intellectual bankruptcy of the world’s central bankers. Why? Central bankers neglect the fact that interest rates are prices. Manipulating those prices through credit expansion or contraction has real and deleterious effects on the economy. Yet while socialism and centralised economic planning have largely been rejected […]

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Dr. Herbener on the Fed

Posted by Gonzalo Schwarz
May 14, 2012
in Blog

[Written Testimony before the Subcommittee on Domestic Monetary Policy and Technology Committee on Financial Services, US House of Representatives, May 8, 2012] In a seminal article published in 1920, Ludwig von Mises demonstrated that there is only one test of whether or not production of something conveys a benefit on society at large.[1] It must be […]

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Jobs, and Obama’s Common Sense

May 11, 2012
in Blog

Reuters reports that employers cut back on hiring, again, in the month of April. Certainly this is a very important outcome in an election year. The perceived health of the economy can play in favor or against the candidate – in the opposite direction. A perceived healthy economic outlook favors the incumbent President, but works […]

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Dr. Paul’s Opening Remarks on the Fed

Posted by Gonzalo Schwarz
May 11, 2012
in Blog

Rep. Ron Paul (R-TX) chaired a House Financial Services Subcommittee hearing on six legislative proposals that either reform or suggest abolishing the Federal Reserve System. image: flickr.com/gageskidmore

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Dr. Klein on the Fed

Posted by Gonzalo Schwarz
May 10, 2012
in Blog

From Mises.org: [Testimony before US House Committee on Financial Services Domestic Monetary Policy and Technology Subcommittee, May 8, 2012] I specialize in the economic theory of organizations — their nature, emergence, boundaries, internal structure, and governance — a field that is increasingly important in economics and was recognized with the 2009 Nobel Prize awarded to […]

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Central Versus Free Banking: the Essay Contest

Posted by Gonzalo Schwarz
May 9, 2012
in Blog

The Mont Pelerin Society Friedrich A. Hayek Fellowships for the 2012 GENERAL MEETING OF THE MONT PELERIN SOCIETY (Prague, Czech Republic – September 2–7, 2012) “It is important here first to distinguish between the need for some ‘lender of last resort’ and the organization of banking on the ‘national reserve’ principle. … It is far […]

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Jim Grant: “The Fed Owns The Stock Market”

Posted by Gonzalo Schwarz
May 9, 2012
in Blog

From ZeroHedge: The dulcet tones of Jim Grant provided much food for thought on Tom Keene’s Bloomberg Radio show this morning. While the interest rate observer did not change his tack on the extreme experimentation of world’s central banks, he did have some new perspective on the incredible moral hazard (or unintended consequence) that is […]

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Missing the Point

May 8, 2012
in Blog

At The Economist blog Free Exchange, different opinions on the situation of Europe are discussed. More precisely, would fiscal austerity have made a difference, or was fiscal policy the right tool? Examples of economists in favor and against austerity are quoted to show the two positions, but the commentary is too framed on the issue […]

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The European Union Is Destroying European Unity

Posted by Gonzalo Schwarz
May 8, 2012
in Blog

by azizonomics So we know that the pro-bailout parties in Greece have failed to form a coalition, and that this will either mean an anti-bailout anti-austerity government, or new elections, and that this will probably mean that the Greek default is about to become extremely messy (because let’s face it the chances of the Greek […]

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The Real Debate On Gold And Money

Posted by Gonzalo Schwarz
May 7, 2012
in Blog

engaged observers who otherwise were content with that central bank apathy awake to the possibility that flexibility for the Federal Reserve comes at the price of individual flexibility. More power for Chairman Bernanke necessarily means less power for you and me.

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Jim Grant: “The Federal Reserve Is The Vampire Squid Of Vampire Squids”

Posted by Gonzalo Schwarz
May 7, 2012
in Blog

Munch’s “The Scream” may be all the rage today, but to Jim Grant, in his latest interview on Bloomberg TV, the record price paid for the painting is not so much a manifestation of modern art as one of modern currency: “This is the flight into things from paper” . Thus begins the latest polemic […]

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Gold Standard for All, From Nuts to Paul Krugman

Posted by Gonzalo Schwarz
May 4, 2012
in Blog

By Amity Shlaes Nut cases. That’s what they are. And if you take an interest in them, you are a nut case, too. That’s the consensus among credentialed economists who describe advocates of a return to the monetary regime known as the gold standard. In fact, the economic pack will marginalize you as a weirdo faster than […]

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