Saturday, 18 November 2017

Monthly Archives August 2012

The Gold Standard Goes Mainstream

Posted by Gonzalo Schwarz
August 30, 2012
in Blog

By SETH LIPSKY An under-reported development of this campaign season is the Republican Party’s decision this week to send Gov. Mitt Romney into the presidential race on a platform effectively calling for a new gold commission. The realization that America’s system of fiat money is part of its economic problem is moving from the fringes of […]

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Ezra Klein Mistakes the Arsonist for a Firefighter

Posted by Gonzalo Schwarz
August 30, 2012
in Blog

by Steven Horwitz In Friday’s Washington Post, Ezra Klein raises a number of criticisms of the gold standard using as his hook the call for a new Gold Commission that appears in a draft of the new Republican Party platform.  Putting aside the question of party politics and what a new Commission might do, Klein’s arguments against the […]

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Gold as a Medium of Exchange and Savings

Posted by Gonzalo Schwarz
August 30, 2012
in Blog

Written by Lewis E. Lehrman Consider the natural properties of gold.  Gold is durable, homogenous, and fungible.  Indeed, by its intrinsic scientific nature, gold is imperishable, indestructible, and malleable.  Gold has a relatively low melting point, facilitating coinage.  Gold is portable and can be readily transported from place to place in exchange for other articles […]

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Sound Money Gains a Champion

Posted by Gonzalo Schwarz
August 28, 2012
in Blog

BY JUDY SHELTON   What are the chances that President Barack Obama and his Treasury secretary, Timothy Geithner, will ever have anything meaningful to say about monetary policy​—​beyond continuing to try to coax Federal Reserve chairman Ben Bernanke to print ever more dollars to buy up ever more U.S. government debt? About the same as the […]

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Money: East vs. West

Posted by Gonzalo Schwarz
August 28, 2012
in Blog

By Steve H. Hanke A country’s money supply is made up of two distinct components. State money — the monetary liabilities of a central bank (typically referred to as base, or high-powered, money) — is one element, and is by far the smallest component of the money supply. The second and most important component of […]

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How Big Should the Banks Be?

Posted by Gonzalo Schwarz
August 23, 2012
in Blog

Simon Johnson has a piece at Bloomberg today that urges the Romney/Ryan ticket to make reining in the big banks a major campaign issue. (Thanks to Michael Brendan Dougherty.) Oddly enough, Johnson makes some good points. (Forget his stuff about how great Teddy Roosevelt’s trust-busting was, and that the firms in question were exploiting the consumer; prices […]

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World Hyperinflations

Posted by Gonzalo Schwarz
August 22, 2012
in Blog

World Hyperinflations by Steve H. Hanke and Nicholas Krus Steve H. Hanke is a Professor of Applied Economics and Co-Director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at The Johns Hopkins University in Baltimore and a Senior Fellow at the Cato Institute. Nicholas Krus is a research associate at […]

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The Economist On Money and the State

Posted by Gonzalo Schwarz
August 22, 2012
in Blog

by George Selgin I couldn’t help being glad to see The Economist refer to Carl Menger’s theory of the origins of money just as I was about to explain that theory to my undergraduate classes. Nor did I at all mind having Menger’s ideas contrasted with those of another of my favorite economists, Charles Goodhart. I was, however, sorry to see […]

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Slumping Money Supply (Not Austerity) Plunges Hungary Into Recession

Posted by Gonzalo Schwarz
August 22, 2012
in Blog

by Steve H. Hanke Hungary is in a recession, again. According to the chattering classes, as well as many analysts and financial reporters, fiscal austerity is the cause of Hungary’s slump. Nonsense. Hungary’s recession results from its slumping money supply. When monetary and fiscal policies move in opposite directions, the economy will follow the direction taken by monetary […]

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The Fed Has Forgotten Sound Money, And Now Just Manipulates Interest Rates

Posted by Gonzalo Schwarz
August 22, 2012
in Blog

by James Dorn While some members of Congress and Republican presidential hopeful Mitt Romney want to label China a “currency manipulator,” little is said about the Federal Reserve’s role as an interest-rate manipulator.  Interest rates are relative prices that should be freely determined in private capital markets, not manipulated by the central bank.  The Fed is […]

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How China Is Driving Federal Reserve Policy

Posted by Gonzalo Schwarz
August 21, 2012
in Blog

By JAMES RICKARDS During the Cold War, national security analysts spoke knowingly about the art of “Kremlinology.” This was a technique for understanding Soviet power relations and policy changes taking place inside the leadership compound in the Kremlin. The Soviet Union was completely opaque. One-time leaders could be demoted and new leaders advanced without any public […]

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Central Banks Race to BUY Gold At Record Pace

August 21, 2012
in Blog

This must be more evidence of Bernanke’s “tradition.” The Olympics may be over, but central banks around the world have begun a race to buy gold and are doing so at the highest level in decades. The World Gold Council recently announced that central banks officially bought 157.5 tonnes of gold, equivalent to just over […]

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Why Is the Price of Gold Falling?

Posted by Gonzalo Schwarz
August 20, 2012
in Blog

By Robert Wenzel: The Atlantic’s  Jordan Weissmann writes: Investors who love gold tend to think of it as a sort of bomb shelter. It’s supposed to be a secure place to park your money when the rest of the financial world is blowing up. So some may find it surprising that in a year when Europe’s troubles […]

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Phase Out the Fed With Sound Money Laws

Posted by Gonzalo Schwarz
August 20, 2012
in Blog

Although it is very encouraging that the House voted 327 to 98 to audit the Fed last month, it is virtually certain that the Senate will not concur this year. Moreover, it is virtually certain that Congress will not act to end or phase out the Fed any time soon. So, what’s to be done about […]

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Ryan: Boon or Bane for U.S. Dollar?

Posted by Gonzalo Schwarz
August 17, 2012
in Blog

Good news: Vice Presidential candidate Paul Ryan may put the focus of the presidential campaign on the sustainability of the U.S. budget. Bad news: Ryan’s plan delivers some tough medicine; if the European experience is any guide, “austerity” makes bad politics. What are the implications for the U.S. dollar? The Ryan budget addresses a key […]

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US Treasury Admits It Conducted A Circular Ponzi Scheme For Years

Posted by Gonzalo Schwarz
August 17, 2012
in Blog

Submitted by Tyler Durden While one may wonder about the implications of the just announced “accelerated windown” of the GSEs, predicated in no small part by the surge in animosity between Tim Geithner and the FHFA’s Ed DeMarco, there is one aspect of the announcement that is completely and utterly unambigious: as part of its justification to demand […]

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Gold Content of the U.S. Dollar from 1792-2008

Posted by Gonzalo Schwarz
August 16, 2012
in Blog

Do you remember the old Wendy’s commercials where the little ol’ lady would find her burger to be “lacking”? In an effort to keep prices from rising amidst perennial inflation, businesses reduce the size of their products; customers are much more sensitive to price rises than to quality degradation. That is why the price system […]

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Reality Check: Is Rep. Paul Ryan Actually A Big Spender? His “Principle” Problem

Posted by Gonzalo Schwarz
August 16, 2012
in Blog

Ben Swann of Fox19 in Cincinnati has been doing some great work recently. Here he discusses VP candidate Paul Ryan’s record of voting for spending bills, e.g. TARP, the auto bailouts, Medicare Part D, etc. Although Ryan has said all of the right things re: Sound Money (see here), and has been a friend of […]

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Farage Blasts Communist Europe And Leaders “Living In Noddy-Land”

Posted by Gonzalo Schwarz
August 15, 2012
in Blog

From ZeroHedge.com: Nigel Farage, looking tanned and refreshed, is back and as he tells FOX Business in this brief clip“nothing has changed” from his views of Europe as the Titanic and its unelected officials dragging it down to the depths of the ocean. Citing Mario Monti specifically with his concerns over allowing politicians to ‘decide’ anything […]

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How Andrew Jackson Killed the Second Bank of the United States

Posted by Gonzalo Schwarz
August 15, 2012
in Blog

by JESSE’S CAFÉ AMÉRICAIN: “Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you […]

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Monetary Reform: The Key to Spending Restraint is Golden Handcuffs

Posted by Gonzalo Schwarz
August 14, 2012
in Blog

Paul Ryan’s plan won’t succeed without legislation to prevent the Federal Reserve from monetizing the national debt. By LEWIS E. LEHRMAN No man in America is a match for House Budget Committee Chairman Paul Ryan on the federal budget. No congressman in my lifetime has been more determined to cut government spending. No one is better […]

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Paul Ryan, Mike Pence and Judy Shelton on Sound Money and Morality and Principles

Posted by Alex Chafuen
August 11, 2012
in Blog

Here is a clip of Paul Ryan on Sound Money at Atlas Economic Research Foundation program, in association with FreedomWorks. In addition to Ryan, we had Mike Pence and Judy Shelton arguing that the battle for sound money requires going beyond economics 4 Min Congressman Mike Pence (IN), and Judy Shelton (Atlas Economic Research Foundation) on Sound […]

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Why People Prefer Government to Markets

Posted by Gonzalo Schwarz
August 10, 2012
in Blog

posted by JOE CARTER People do not love markets,” says Pascal Boyer of the International Cognition & Culture Institute, “there is a lot of evidence for that.” Sadly, Boyer is right and I suspect he’s right about the cause too: People do not like markets because people seem not to understand much about market economics. We don’t fully […]

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Why Dost Thou Whet Thy Knife so Earnestly?

Posted by Gonzalo Schwarz
August 10, 2012
in Blog

by Simon Black Oxford, England Oxford is about an hour west of London by train, and if you’ve never been, I highly recommend it. On a per-capita basis, it’s one of the most cultured cities in the world, right up there with Vienna, London, New York, Paris, San Francisco, Chicago, Budapest, and Austin. Walking down Cornmarket Street on a […]

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Jerry Jordan, Sound Money Champion, at Francisco Marroquin University Program

Posted by Alex Chafuen
August 9, 2012
in Blog

This video, The Ghost of Inflation: The Threat of Going Back, includes Jerry Jordan, one of the great economists who never forgot the importance of sound money.  Initial remarks begin at 16:30 minutes…  Q & A begins at 1 hour. The audience included business and political leaders, as well as students–english as second language. View more […]

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Core Problem Is Too Much Centralization … In Both Government AND the Private Sector

Posted by Gonzalo Schwarz
August 9, 2012
in Blog

Although, is banking in America even a private sector anymore? Submitted by George Washington Nobel prize winning economist Ed Prescott has previously said that we have to break up the big banks. Prescott notes in a new interview that centralization – of either government or banking – is a core problem: [Question] Brussels is using this crisis to grab more powers from […]

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Return to the Gold Standard

Posted by Gonzalo Schwarz
August 8, 2012
in Blog

Written by Scott Gillette (H/T thegoldstandardnow.org) Gene Wilder’s character in the movie Young Frankenstein proclaims at one point, “Hearts and kidneys are tinker toys compared to the central nervous system!” The same analogy can be applied to almost any other political issue, which are hearts and kidneys compared to monetary policy, which would be the central nervous […]

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The Cantillon Effect

Posted by Gonzalo Schwarz
August 7, 2012
in Blog

By John Aziz Expansionary monetary policy constitutes a transfer of purchasing power away from those who hold old money to whoever gets new money. This is known as the Cantillon Effect, after 18th Century economist Richard Cantillon who first proposed it. In the immediate term, as more dollars are created, each one translates to a […]

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Led by Rep. Ron Paul, Congress Explores Sound Money

Posted by Gonzalo Schwarz
August 6, 2012
in Blog

Written by  Alex Newman As concerns over the U.S. dollar and the Federal Reserve continue to grow, U.S. lawmakers explored sound money, competing currencies, and the route to monetary freedom during an August 2 congressional hearing chaired by Rep. Ron Paul (R-Texas). It was the final House Domestic Monetary Policy Subcommittee hearing led by the long-time champion of […]

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The Mutual Mower Association

Posted by Tyler Watts
August 6, 2012
in Blog

by Tyler Watts Larry, George, and Steve all live next door to each other in the quiet town of Ayr. As respectable men about town, they all endeavor to keep their houses neat, especially their lawns. Currently only Larry has a mower. One summer day, right after Larry cuts his grass, George comes over and […]

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John Tamny and the Problem with Fractional Reserve Banking

Posted by Gonzalo Schwarz
August 3, 2012
in Blog

(H/T Zerohedge.com) by James E. Miller John Tamny of Forbes is one of the more informed contributors in the increasingly dismal state of economic commentating.  Tamny readily admits he is on the libertarian side of things and doesn’t give into the money-making game of carrying the flag for a favored political party under the guise of a neutral […]

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Priced for Collapse

Posted by Gonzalo Schwarz
August 3, 2012
in Blog

by Peter Schiff Where is the gold price today? If you’re like many Americans, you have no idea whether it went up, down, or sideways. Fortunately, I know my readers to be more informed – you likely know that after falling from almost $1900, gold has been trapped around $1600 since early May. But you […]

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We Should All Love Fed Transparency

Posted by Gonzalo Schwarz
August 2, 2012
in Blog

by John Aziz Ron Paul’s signature Audit the Fed legislation finally passed the House; on July 25, the House bill was passed 327 to 98. But the chances of a comprehensive audit of monetary policy — including the specifics of the 2008 bailouts — remain distant. Why? Well, the Fed doesn’t seem to want the […]

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Imposed versus Adopted Monetary Rules

Posted by Gonzalo Schwarz
August 2, 2012
in Blog

Steven Horwitz There’s been some recent controversy over the difference between rules and discretion in monetary policy, started, innocently enough, by a Don Boudreaux blog post and a Daniel Keuhn comment, then a full post by Daniel.  Bob Murphy weighed in as well.  I think part of the problem here is a dual meaning of the word “rule” in the […]

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LI(E)BOR: The Cartel Emerges

Posted by Gonzalo Schwarz
August 1, 2012
in Blog

Just when you thought the Li(e)bor scandal had jumped the shark, Germany’s Spiegel brings it back front-and-center with a detailed and critical insight into the ‘organized fraud’ and emergence of the cartel of ‘bottom of the food chain’ money market traders. “The trick is that you can’t do it alone” one of the ‘chosen’ pointed out, but regulators have […]

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Money and the Coming World Order

Posted by Gonzalo Schwarz
August 1, 2012
in Blog

      Harold Van B. Cleveland (Author), Charles P. Kindleberger (Author), Lewis E. Lehrman (Author, Editor),David P. Calleo (Author, Editor), 1st Edition (Editor)   American and World prosperity depend on monetary reform, Federal Reserve reform, and restoration of international monetary order. Today, national economic policy making is largely concerned with the problems of unemployment and inflation. More precisely, it is their simultaneous […]

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