Saturday, 01 November 2014

Monthly Archives July 2012

Does the Fed Really Monetize Government Debt?

Posted by Gonzalo Schwarz
July 31, 2012

by George F. Smith If monetizing debt is understood to mean printing money to pay for government deficits, then the Fed is guilty. The basics are quite simple. The federal government issues and the Fed buys interest-bearing debt certificates. The Fed pays for these securities by creating digits on a computer that represent dollars. In […]

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Priceless: How The Federal Reserve Bought The Economics Profession

Posted by Gonzalo Schwarz
July 31, 2012

An oldie, but a goodie. From the huffingtonpost.com: The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found. This […]

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Bubble Economics

Posted by Gonzalo Schwarz
July 30, 2012

 Works so nice, apparently we should try it twice. Then thrice… Dr. Paul Krugman is calling for another bubble, this time in Germany, to solve the problems of a previous bubble in the PIIGS nations (Portugal, Italy, Ireland, Greece, Spain) of southern Europe (or, hilariously, the “GIPSI”). Jumping from bubble to bubble is (almost?) guaranteed […]

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Fool’s Gold at the Olympics

Posted by Gonzalo Schwarz
July 30, 2012

by Butler Shaffer A news story (link added -ed.) informs us that a “gold” medal at the Olympics contains 1.34% gold.  It wasn’t always this way.  In 1912, the gold medal contained 100% gold.  In 1913 the Federal Reserve Act was enacted, and while there is no apparent causal connection between this legislation and the content of […]

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The Golden Rule

Posted by Gonzalo Schwarz
July 27, 2012

Written by Jonathan Barnes James Grant, founder of Grant’s Interest Rate Observer, is a longtime advocate of the gold standard and critic of Central Bank monetary policy. In this interview with CFA Magazine, Grant speaks about the failures of the current monetary system, the practical steps toward a new gold standard, and his assessment of Federal […]

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Achieving Sound Money (from the archives of Antony Fisher)

Posted by Alex Chafuen
July 27, 2012

The good students of economic history marvel at how often human beings commit the same mistakes.   In a draft about “How to Achieve a Sound Money (and avoid the Road to Serfdom)”, Antony Fisher quotes then British Prime Minister Callaghan.   In The Wall Street Journal of January 31, 1977, under the title of “Keynes […]

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