Wednesday, 13 December 2017

Monthly Archives July 2012

Does the Fed Really Monetize Government Debt?

Posted by Gonzalo Schwarz
July 31, 2012
in Blog

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
in Blog

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
in Blog

 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
in Blog

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
in Blog

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
in Blog

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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Ron Paul on LIBOR “Isn’t this essentially what the Fed does?”

Posted by Gonzalo Schwarz
July 26, 2012
in Blog

July 25, 2012 C-SPAN Representative from Texas Dr. Ron Paul questions Timothy Geithner about the LIBOR SCANDAL, the Fed, interest rates, and American taxpayers paying elite bond traders to serve (and become very wealthy) as intermediaries between the Treasury and the Fed. Hearing Mr. Geithner dodge and dissemble is difficult and frustrating – but just […]

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The Soviet Banking System – and Ours

Posted by Gonzalo Schwarz
July 25, 2012
in Blog

By JUDY SHELTON Many in America today fear that our nation is going the way of Europe—becoming more socialist and redistributionist as government grows ever larger. But the most disturbing trend may not be the fiscal enlargement of government through excessive spending, but rather the elevated role of monetary policy. Our central bank, the Federal Reserve, […]

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Central Bank Policy Leaves Tidal Wave of Money on Horizon

Posted by Gonzalo Schwarz
July 25, 2012
in Blog

David Ignatius at WaPo has written an opinion piece which warns that the American and European Central banks have been “forced” by complacent and cowardly politicians into pumping money into the economy – to keep the economy afloat – because politicians have been unwilling to commit to the austerity and deficit reduction necessary to tackle […]

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David Stockman on the Debt Supercycle and Unsound Money

Posted by Gonzalo Schwarz
July 24, 2012
in Blog

At the latest Casey Research Conference, “Recovery Reality Check” in Weston, Florida, Casey Research’s Chief Technology Investment Strategist Alex Daley sits down with David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan.   For more visit the cobdencentre.org… image: flickr.com/newamerica

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Money, Where’s the Money?

Posted by Gonzalo Schwarz
July 23, 2012
in Blog

by Steve H. Hanke This article appeared in the August 2012 issue of Globe Asia. Since September 2007, when the British Government and the Bank of England bungled the Northern Rock affair, one government after another has sent in the boy scouts in an attempt to douse what has become an international economic wildfire. Their efforts […]

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The New York Fed On The “Phenomenal Asset” That Is Gold

Posted by Gonzalo Schwarz
July 23, 2012
in Blog

From Zerohedge.com: The New York Fed has a few words to say about gold: A PHENOMENAL ASSET For centuries, gold had a profound impact on history, as a symbol and a storehouse of wealth accepted universally around the world. Gold functions as a medium of exchange, particularly in areas where currencies are distrusted. Yet gold […]

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LI(e)BOR

Posted by Gonzalo Schwarz
July 19, 2012
in Blog

Jon Stewart at the Daily Show brings you the LIBOR scandal. He would like you to know that it doesn’t involve a mythical half-lion, half-boar creature from beyond. The Daily Show Get More: Daily Show Full Episodes,Political Humor & Satire Blog,The Daily Show on Facebook The Daily Show Get More: Daily Show Full Episodes,Political Humor […]

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Social Darwinism and the Free Market

Posted by Gonzalo Schwarz
July 18, 2012
in Blog

 by David Gordon In a speech to the American Society of Newspaper Editors on April 3, 2012, President Obama called a budget proposal of his Republican opponents in Congress “thinly veiled social Darwinism.” What did the president mean by this comment? The budget proposal in question, he claimed, would require drastic cuts in government programs designed […]

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You Didn’t Build That

Posted by Gonzalo Schwarz
July 18, 2012
in Blog

We would like to note some things the president did not say in his speech: “See that fiat money in your pocket? You didn’t build that, the government did.” “That financial regulatory regime and its (un)intended consequences? Government research made that happen.” “If you’re underwater, you couldn’t have done that on your own, it took […]

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Smoking Gun # 83,941

Posted by Gonzalo Schwarz
July 17, 2012
in Blog

We’ve gotten to the point where they don’t even have to try anymore. If a bank or bureaucrat does it, it can’t be wrong by definition. They are incapable of doing wrong, or of having any but the purest, most altruistic motives. Therefore the presumption is that if they’ve committed what is seemingly a crime […]

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Get a Dog; Then, Get Gold

Posted by Gonzalo Schwarz
July 16, 2012
in Blog

 by Kathleen Packard There’s been a lot of talk in the presidential race this year about dogs – the Obamas’ Portuguese water dog Bo and the Romneys’ deceased dog –  Irish setter Seamus.   It has often been said about Washington, if you want a friend, get a dog.  At least that is what Harry Truman […]

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History of the Gold Standard

Posted by Gonzalo Schwarz
July 16, 2012
in Blog

Coming up next, a discussion on the history of the gold standard. Three panelists-including author Lewis Lehrman-debate the origins, benefits, and drawbacks of the system. They also discuss why the U.S. left the gold standard, and the arguments for reinstating it. The New York Historical Society hosted this event and it’s just over an hour. […]

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Treasury Probe Cites Officials

Posted by Gonzalo Schwarz
July 16, 2012
in Blog

by Bob Cusack Treasury Department officials have been cited for soliciting prostitutes, breaking conflict-of-interest rules and accepting gifts from corporate executives, according to the findings of official government investigations. The revelations of unethical behavior at Treasury are detailed in little-noticed documents posted this month on governmentattic.org, which publishes agency responses to Freedom of Information Act (FOIA) requests. While […]

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The Return of the Gold Standard

Posted by Gonzalo Schwarz
July 12, 2012
in Blog

by Peter Schiff In my latest book, The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country, I devote a full chapter to the merits of the historical gold standard and reasons to reinstate it. What I did not mention and few investors notice is that central banks are already returning to […]

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Fractional Reserves and Economic Instability

Posted by Gonzalo Schwarz
July 12, 2012
in Blog

[Testimony before the Subcommittee on Domestic Monetary Policy and Technology of the Committee on Financial Services, US House of Representatives “Fractional Reserve Banking and Central Banking as Sources of Economic Instability: The Sound Money Alternative,” June 28, 2012] by Dr. John Cochran Fractional-reserve banking has historically been viewed by some economists and most monetary cranks […]

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Chart Of The Year: The Fed Has Doubled The S&P Admits… The Fed

Posted by Gonzalo Schwarz
July 11, 2012
in Blog

Submitted by Tyler Durden Prepare to have your minds blown courtesy of what is easily the most astounding chart we have seen in a long, long time, prepared by the economists at the, drumroll, New York Fed, which finds that absent what the Fed calls “Pre-FOMC Announcement Drift“, or the move in the S&P in the […]

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Our Money is Dying

Posted by Gonzalo Schwarz
July 10, 2012
in Blog

by Chris Martenson of Peak Prosperity: A question on the minds of many people today (increasingly those who manage or invest money professionally) is this: How do I preserve wealth during a period of intense official intervention in and manipulation of money supply, price, and asset markets? As every effort to re-inflate and perpetuate the credit bubble is […]

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The Euro’s Fetters?

Posted by Gonzalo Schwarz
July 9, 2012
in Blog

Is the Euro harder to escape than the Gold Standard? by Gonzalo Schwarz Spanish economist Jesús Huerta de Soto just published a new article entitled “An Austrian Defense of the Euro.” In this paper Huerta de Soto develops an argument based on the lectures given by Nobel laureate Friedrich Hayek in the 1930’s at the […]

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The Essence of Central Banking

Posted by Tyler Watts
July 6, 2012
in Blog

by Tyler Watts “In theory, there is no difference between theory and practice. In practice, there is.” –Yogi Berra In theory, central banks exist to do things like “promote economic stability” and “uphold the value of the currency.” If you consult any Federal Reserve official (or any mainstream economics textbook), the stated purposes of the […]

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“Fraude” New Documentary Film Based on Sound Monetary Analysis

Posted by Alex Chafuen
July 6, 2012
in Blog

Thanks to Instituto Juan de Mariana for providing the script based on sound monetary analysis for the film Fraude (Fraud).  The documentary is in Spanish and includes the opinion of leading economists based in Spain including Jesús Huerta de Soto, Carlos Rodríguez Braun, Juan Ramón Rallo, and many others.   The film explains how government intervention […]

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The History of the Federal Reserve System

Posted by Gonzalo Schwarz
July 6, 2012
in Blog

From Zerohedge.com: For better or mostly worse, the Federal Reserve has been governing the monetary system of the United States since 1914. The visual history below maps the rise of the Fed from its origins as a relatively minor institution, often controlled by Presidents and The Treasury to its supposedly independent and self-aware current position as, arguably, […]

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Something is Rotten in the State of Denmark

Posted by Gonzalo Schwarz
July 5, 2012
in Blog

Central Banks Helpless As Denmark Goes NIRP, Cuts Deposit Rate To NEGATIVE 0.2% From ZeroHedge.com: A few days ago we noted that the ECB may well be contemplating the monetary neutron bomb, which would see it lower rates to below zero, ushering in a Negative Interest Rate Policy. Today, Mario Draghi cut such speculation short promising the […]

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Why Gold?

Posted by Gonzalo Schwarz
July 5, 2012
in Blog

by James E. Miller “I noticed a contradiction,” writes an anonymous blogger: The Austrian School advocates against price fixing and economic planning, and the Austrian School advocates a gold standard, which can be seen as a way of fixing the rate of change of the size of the money supply through economic planning. While it’s true that […]

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