Tuesday, 12 December 2017

Monthly Archives December 2012

“Après moi le deluge”

Posted by Alex Chafuen
December 31, 2012
in Blog

by Alex Chafuen During a recent interview on NTN24TV,  I was asked about the difference between the fiscal deficit and the fiscal “cliff.”  I told them that the deficit is more like a flood (deluge), and that explanation led me to write an op-ed for Investors Business Daily, thanks Daniel Bunn for co-writing. We begin: […]

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Sound Money vs. Stable Money

Posted by Gonzalo Schwarz
December 28, 2012
in Blog

by Kenneth Gould Historically, there have been two contrasting monetary doctrines. The first doctrine favors what it calls “sound money,” defined as money that has a purchasing power determined by markets, independent of governments and political parties. A true gold standard is one example of money that has an intrinsic value determined by markets rather than governments. Note that, under a sound money doctrine’s principles, a gold standard where the government […]

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Another Step Toward Helicopter Money, And Away From Freedom

Posted by Gonzalo Schwarz
December 28, 2012
in Blog

by James Dorn The Federal Reserve’s decision to enter the New Year by extending and enlarging its policy of quantitative easing is another step toward “helicopter money”—that is, directly increasing the public’s cash balances by an injection of high-powered money.  This could be done by dropping money from helicopters or by having the U.S. Treasury print […]

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Keep Your Golden Eyes on China

Posted by Devin Roundtree
December 28, 2012
in Blog

by Devin Roundtree Due to the European Debt Crisis, little attention has been paid to the fundamental changes taking place in China. For more than a decade China has served as the biggest creditor to the United States government. But, two years ago, China apparently had a change of heart. The Chinese have long complained […]

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Sweden’s War on Cash Runs Into a Wall – and a Heroic Bank

Posted by Gonzalo Schwarz
December 28, 2012
in Blog

by Joseph T. Salerno The war on cash in Sweden may be stalling. The anti-cash movement has been vigorously promoted by major Swedish commercial banks as well as the Riksbank, the Swedish central bank. In fact, for three of the four major Swedish banks combined, 530 of their 780 office no longer accept or pay out cash. In […]

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Gold and Griffins

Posted by Gonzalo Schwarz
December 28, 2012
in Blog

by  Ralph J. Benko Some, occasionally, have wondered how it is that gold is produced. Excellent authority has it that it is stolen from griffins by one-eyed men. The “Father of History” Herodotus wrote: But in the north of Europe there is by far the most gold. In this matter again I cannot say with assurance how the […]

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Bernanke Hangs Loose

Posted by Gonzalo Schwarz
December 26, 2012
in Blog

by Frank Shostak On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 billion of mortgage debt a month. This decision is likely to boost the Fed’s balance sheet from the present $2.86 trillion […]

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“Gold, and Frankincense and Myrrh”

Posted by Gonzalo Schwarz
December 25, 2012
in Blog

by Ralph J. Benko There is a historical, cultural, and even regal dignity to gold. From the Gospel according to Matthew (King James Version): 2 Now when Jesus was born in Bethlehem of Judaea in the days of Herod the king, behold, there came wise men from the east to Jerusalem, Tintoretto, The Adoration of the […]

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Is a Gold Standard Necessarily Vulnerable to Speculative Attacks?

Posted by Gonzalo Schwarz
December 18, 2012
in Blog

   by Lawrence H. White My frequent co-author George Selgin (2012) finds it “more doubtful [today] than ever before that any government-sponsored and administered gold standard will be sufficiently credible to either be spared from or to withstand redemption runs.” He quotes James D. Hamilton (2005) to similar effect:  given that central banks the Treasuries […]

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Further Inside the Brain of the Sound Money Advocate

Posted by Gonzalo Schwarz
December 18, 2012
in Blog

by Anthony Randazzo Bloomberg’s recently (and quite rightly) christened “Forbes 30 Under 30” superstar Josh Barro is inside my head. Or at least that’s what the title of his recent post for The Ticker implies. But since he kindly didn’t dig deeper in exploring the depths of our depraved “Hard-Money Advocate” Brains, let me clear up […]

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Too Late, Fiscal Cliff. Bracket Creep Beat You To It.

Posted by Gonzalo Schwarz
December 17, 2012
in Blog

by Devin Roundtree In order to avert next year’s automatic spending cuts, President Obama has called for a return to President Clinton’s higher tax rates on incomes over $200,000 ($250,000 for joint filers). But the President’s proposal will actually increase rates well beyond his democratic predecessor. Back in the 1970s when inflation ran wild, many […]

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Leszek Balcerowicz: The Anti-Bernanke

Posted by Gonzalo Schwarz
December 16, 2012
in Blog

By MATTHEW KAMINSKI As an economic crisis manager, Leszek Balcerowicz has few peers. When communism fell in Europe, he pioneered “shock therapy” to slay hyperinflation and build a free market. In the late 1990s, he jammed a debt ceiling into his country’s constitution, handcuffing future free spenders. When he was central-bank governor from 2001 to 2007, […]

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Myth 8: The Gold Standard Helped Spread the Great Depression to the Rest of the World

Posted by Gonzalo Schwarz
December 14, 2012
in Blog

by Lawrence H. White The second part of the “Golden Fetters” indictment, to quote a recent statement of it (Bordo 2010, p. 40), is that “The Great Depression spread across the world via the fixed exchange rate gold standard.”  In Eichengreen’s (1992, p. xi) earlier words, the international gold standard “transmitted the destabilizing impulse from […]

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The Case For 100% Reserve Banking

Posted by Devin Roundtree
December 14, 2012
in Blog

by Devin Roundtree Even among the most vocal advocates of returning to a gold standard, a banking system that requires banks to reserve 100% of all deposits redeemable on demand is considered impractical and a hindrance to economic growth. However, not only is 100% reserve banking practical, it is lawful and will not create credit […]

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Livin’ It Up at the Hotel California

Posted by Gonzalo Schwarz
December 14, 2012
in Blog

(Reuters) – The Federal Reserve’s latest moves to reduce borrowing costs and boost the economy could be hard to reverse, a top Fed official said on Friday. “I argued that basically we were at risk of what I call a ‘Hotel California’ monetary policy,” Dallas Fed President Richard Fisher said in an interview on CNBC. Like the […]

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The Question Is: Who Plans?

Posted by Gonzalo Schwarz
December 13, 2012
in Blog

Let’s not forget that FDR established a daily gold price by use of lucky numbers. Competition in money allows for the same experimentation and knowledge discovery as competition in other areas of life and economy… -ed. by Don Boudreaux Here’s a letter to the Washington Post: Carter Eskew finds inspiration for our troubled times in FDR’s […]

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Myth 7: The Gold Standard was Responsible for the Deflation that Ushered in the Great Depression

Posted by Gonzalo Schwarz
December 13, 2012
in Blog

by Lawrence H. White The most prominent set of criticisms of the gold standard among academic economists in recent years blame the gold standard for the creating the Great Depression in the United States and for then spreading it internationally.  Douglas Irwin (2011, p. 1) summarizes the case and identifies its most cited source: Modern […]

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Fedophilia

Posted by Gonzalo Schwarz
December 6, 2012
in Blog

by George Selgin Although the movement to “End the Fed” has a considerable popular following, only a very tiny number of economists—our illustrious contributors amongst them—take the possibility seriously. For the rest, the Federal Reserve System is, not an ideal currency system to be sure (for who would dare to call it that?), but, implicitly at […]

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A Golden Path: Reply to Professor Cochran

Posted by Gonzalo Schwarz
December 5, 2012
in Blog

by Godfrey Bloom and Patrick Barron In his recent Mises Daily article “Fool’s Gold Standards,” John P. Cochran warns his readers against accepting any monetary reform less than that of money created by the free market. Therefore, he felt it necessary to criticize our previous Mises Daily article “A Golden Opportunity,” in which we advised Germany to leave the European Monetary Union, […]

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Forbes Review: Roads to Sound Money

Posted by Gonzalo Schwarz
December 3, 2012
in Blog

by Ralph Benko The only plank remaining under notable discussion from either national convention platform of 2012 is the GOP platform’s call for a national monetary commission.  Although widely reported as a call for a new “Gold Commission”, the actual text calls for a “commission to investigate possible ways to set a fixed value for […]

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