Wednesday, 13 December 2017

Author Archives Gonzalo Schwarz

The Politics of Money

Posted by Gonzalo Schwarz
July 14, 2014
in Blog

In her latest article in the Weekly Standard, Atlas Network Senior Fellow and Sound Money Project Co-Director Dr. Judy Shelton summons U.S. leaders to “consider profound monetary reform to establish the reliability of America’s currency and help build a new international monetary system,” and not invoke “sound money” as a mere platitude. Dr. Shelton challenges […]

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Another Financial Meltdown on the Horizon

Posted by Gonzalo Schwarz
July 2, 2014
in Blog

Is there another financial meltdown on the horizon? Dr. Judy Shelton who co-directs the Atlas Sound Money Project surely believes so. In her latest article in The Hill Dr. Shelton warns about the “alarming disconnect between the performance of global equity markets, which are booming, and an underlying world economy that is merely limping along”. […]

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Bitcoin and Other Alternatives to the Current Monetary System

Posted by Gonzalo Schwarz
June 11, 2014
in Blog

As the story goes, pirates would bite into pure gold coins in order to evaluate their quality, thus creating the original ‘bit coin.’ The new payment system, Bitcoin, which relies entirely on digital money, wasn’t created however, until 2008. The speakers at last night’s Atlas Network event “The Future of Money: Bitcoin, the Gold Standard […]

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Notes on the Establishment of a Money Unit

TJ-Money-UnitAtlas is pleased to announce the release of a new, limited edition reprinting of Thomas Jefferson’s Notes on the Establishment of a Money Unit, with original photographs of the 1784 text. Envisioned by Atlas Senior Fellow Judy Shelton, this unique and beautifully crafted book provides the historical foundations of America’s ideals towards money and currency. In the foreword, Dr. Shelton asks, “Why did the man responsible for defining the ideals of a nation take it upon himself to define the value of its money unit?” For Shelton, the text, in its original form, makes clear both Jefferson’s thought process and clarifies his objectives. It demonstrates his desire to ensure money in America served as an accurate and reliable standard of value, not as another policy instrument for government to serve its own ends.

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Bulgaria’s Currency Board versus Ukraine’s Chaos

Posted by Gonzalo Schwarz
February 28, 2014
in Blog

By Steve H. Hanke When Communism inevitably and finally collapsed, Bulgaria’s economy was a basket case – behind almost all other communist basket cases, including Ukraine’s. Indeed, Bulgaria defaulted on its debt in 1990. By February 1991, Bulgaria had broken out in a bout of hyperinflation, with the inflation rate at 123% per month. And […]

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QE is a Mistake—a Big One

Posted by Gonzalo Schwarz
February 26, 2014
in Blog

by Allan H. Meltzer, Carnegie Mellon University and Hoover Institution With $2.5 trillion sitting idle on bank balance sheets and more than $2 trillion additional sitting on corporate balance sheets, we should expect the Federal Reserve to ask: What can more quantitative easing—QE—do that banks and corporations cannot do without it? The right answer is […]

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Thoughts on Jefferson and the Dollar at Monticello

Posted by Gonzalo Schwarz
February 11, 2014
in Blog

The following speech was given by Dr. Judy Shelton on January 30th, at the Jefferson Library in Thomas Jefferson’s Monticello: [Dr. Shelton] Thank you very much, very pleased to be here. It’s an honor to be introduced by Andrew O’Shaughnessy… I taught with your father, who is professor emeritus at the graduate business school at […]

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Prof. Bernanke’s Monetary Mess

Posted by Gonzalo Schwarz
January 22, 2014
in Blog

By Steve H. Hanke             Most who have graded Prof. Ben Bernanke’s twelve years at the Federal Reserve have issued marks which range from A to a gentleman’s C. I think those marks are much too generous. Indeed, I think a failing mark would be more appropriate. In the ramp up to Britain’s Northern Rock […]

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Europe’s Bank Money Blues

Posted by Gonzalo Schwarz
November 22, 2013
in Blog

By Steve Hanke   Well, it’s official, the economic talking- head establishment has declared war on Germany. The opening shots in this battle were fired by none other than the United States Treasury Department, which had the audacity to blame Germany for a weak Euro- zone recovery in its semi-annual foreign exchange report. The Treasury’s […]

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More Credit, More Money: Poland and the Euro-zone

Posted by Gonzalo Schwarz
November 11, 2013
in Blog

By Steve H. Hanke Money matters — it’s a maxim of Prof. Milton Friedman that I repeat often in my columns, and to my students in class. Since the Northern Rock bank run of 2007 — the “opening shot” of the recent financial crisis — the money supply, broadly measured, in Poland and the rest […]

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A Hard Anchor for the Dollar

Posted by Gonzalo Schwarz
November 8, 2013
in Blog

By Warren Coats After years of destabilizing monetary policy by the Federal Reserve, there is growing sentiment that our fiat currency system should be replaced with a hard anchor. Yet, the gold and silver standard anchors adopted in much of the world over the two centuries preceding the United States’ abandonment of gold in 1971, […]

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Return to the Gold Standard?

Posted by Gonzalo Schwarz
October 31, 2013
in Blog

Former Reagan Gold Commissioner Lewis Lehrman on the outlook for gold.       Watch the latest video at video.foxbusiness.com Watch the latest video at video.foxbusiness.com

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Yellen, the Hawk?

Posted by Gonzalo Schwarz
October 29, 2013
in Blog

  By Steve H. Hanke This article appeared in the November 2013 issue of Globe Asia.   Well, it’s official. President Obama has picked Janet Yellen as his nominee to be the next Federal Reserve Chairman. In the months leading up to this announcement, the press unanimously dubbed Yellen the Queen of the Doves, pointing […]

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Little Difference Between Monetary Activists Yellen, Summers For Top Fed Post

Posted by Gonzalo Schwarz
September 3, 2013
in Blog

By JEFFREY BELL AND RICH DANKER There is thought to be a pitched battle raging within the White House over President Obama’s pick to succeed Federal Reserve Chairman Ben Bernanke when his term expires early next year. Bernanke’s deputy Janet Yellen is the liberal favorite for her vocal position in favor of continued monetary stimulus, […]

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To Make Sense of the Coins Act, Follow the Money

Posted by Gonzalo Schwarz
August 26, 2013
in Blog

by Steve Hanke Proposed legislation to abolish the dollar bill and replace it with a dollar coin is government at its worst. The American people might be surprised to learn that for the past 20 years a handful of lobbyists and lawmakers—mostly from states with mining and metal-processing interests—have been pushing a proposal to take […]

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Commentary on Troubled Currencies

Posted by Gonzalo Schwarz
July 25, 2013
in Blog

by Steve Hanke For academics, the term “troubled currency” might be a term of art. But for people who are faced with such a currency, they know a troubled currency when they see one. Today, this is the case for millions of people around the world — most notably in Iran, North Korea, Argentina, Venezuela, […]

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The Troubled Currencies Project

Posted by Gonzalo Schwarz
July 10, 2013
in Blog

A Joint Cato Institute – Johns Hopkins Project Directed by Prof. Steve H. Hanke Senior Fellow, The Cato Institute Professor of Applied Economics, The Johns Hopkins University   For various reasons — ranging from political mismanagement, to civil war, to economic sanctions — some countries are unable to maintain a stable domestic currency. These “troubled” […]

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Salerno and Selgin on Deflation–and Quantitative Easing

Posted by Gonzalo Schwarz
June 4, 2013
in Blog

By Joseph Salerno In an interview on CNBC’s European Closing Bell show, George Selgin presents an eloquent and compelling defense of deflation that is caused by increasing productivity in the economy. He refers to this as “good deflation.” Indeed, Selgin argues that such deflation is “desirable,” because any attempt by the Fed to offset it […]

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The Federal Reserve vs. Small Business

Posted by Gonzalo Schwarz
June 4, 2013
in Blog

By Steve H. Hanke Given all the attention that the Federal Reserve has garnered for its monetary “stimulus” programs, it’s perplexing to many that the U.S. has been mired in a credit crunch. After all, conventional wisdom tells us that the Fed’s policies, which have lowered interest rates to almost zero, should have stimulated the […]

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Bernanke Talks, Markets Wobble. There Must Be a Better Way

Posted by Gonzalo Schwarz
May 28, 2013
in Blog

Rep. Kevin Brady’s Centennial Monetary Commission initiative might point toward a useful policy overhaul. By JUDY SHELTON Since Federal Reserve Chairman Ben Bernanke testified before Congress’s Joint Economic Committee Wednesday morning, commenting on the economic outlook and responding to questions from lawmakers on the likely path of monetary policy, financial markets have experienced turmoil. Triple-digit gains […]

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Hot Money, Cold Credit

Posted by Gonzalo Schwarz
May 23, 2013
in Blog

By  Steve H. Hanke This article appeared in the June 2013 issue of Globe Asia.   Money matters — it’s a maxim of Prof. Milton Friedman that I repeat often in my columns. Since the Northern Rock bank run of 2007 — the “opening shot” of the financial crisis — the money supply, broadly measured, in […]

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The Devolution of the Dollar

Posted by Gonzalo Schwarz
May 22, 2013
in Blog

From the Cato Policy Report: For more than 100 years, from roughly 1800 to 1912, the purchasing power value of the dollar under the gold-and-silver standard was essentially constant. With the creation of the Federal Reserve and its discretionary policies of the last century, however, the dollar’s value has declined by more than 95 percent. […]

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Arizona Legislature Approves Gold and Silver as Money

Posted by Gonzalo Schwarz
April 26, 2013
in Blog

By Alex Newman As trust in the Federal Reserve System and its fiat dollar continues to plummet worldwide, legislation making gold and silver into legal tender was given final approval by Arizona lawmakers on Monday when the Republican-led state House of Representatives voted overwhelmingly in favor of the bill. With tremendous grassroots support, an earlier […]

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What Is a Dollar?

Posted by Gonzalo Schwarz
April 22, 2013
in Blog

by EDWIN VIERA Mr. Vieira is an attorney specializing in constitutional law. He is the author of numerous publications on monetary law. This is a condensed version of the monograph “What Is a Dollar?,” distributed by the National Alliance for Constitutional Money. All rights to this condensed version are reserved by the National Alliance for […]

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Private innovation in currencies is a good thing

Posted by Gonzalo Schwarz
April 22, 2013
in Blog

by Matt Ridley I have a column in the Times on bitcoins and their implications for private money Bitcoins — a form of digital private money — shot up in value from $90 to $260 each after Cypriot bank accounts were raided by the State, then plunged last week before recovering some of their value. […]

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Paul Krugman v. David Stockman: The Great Debate Over Gold Continues

Posted by Gonzalo Schwarz
April 22, 2013
in Blog

by Ralph Benko Amid an ongoing decline in the price of gold, a major brawl recently broke out in the elite media over … the gold standard. What is this free-for-all all about?  And why does it matter?  It matters because… the gold standard finally has demonstrated that, after a long eclipse, it is being […]

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Hyperinflation? No. Inflation? Yes.

Posted by Gonzalo Schwarz
March 28, 2013
in Blog

BY STEVE HANKE While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking. Is hyperinflation coming to the U.S.? No. Hyperinflation arises […]

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Of Krugman & Minsky

Posted by Gonzalo Schwarz
March 5, 2013
in Blog

From Azizonomics… Paul Krugman just did something mind-bending. In a recent column, he cited Minsky ostensibly to defend Alan Greenspan’s loose monetary policies: Business Insider reports on a Bloomberg TV interview with hedge fund legend Stan Druckenmiller that helped crystallize in my mind what, exactly, I find so appalling about people who say that we must tighten monetary policy […]

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The Fed’s Tightening Pipe Dream

Posted by Gonzalo Schwarz
March 5, 2013
in Blog

  Does the Chairman really believe that the Fed will be able to just sit back and watch the money supply unwind itself? by Peter Schiff Testifying before the US Senate this past Tuesday, Fed Chairman Ben Bernanke made an extraordinary claim about its bloated balance sheet: “We could exit without ever selling by letting […]

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The Myth of Fed Independence

Posted by Gonzalo Schwarz
March 4, 2013
in Blog

by Murray N. Rothbard [Excerpted from The Case Against The Fed.] By far the most secret and least accountable operation of the federal government is not, as one might expect, the CIA, DIA, or some other super-secret intelligence agency. The CIA and other intelligence operations are under control of the Congress. They are accountable: a Congressional committee […]

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Debunking the Myths About Central Banks

Posted by Gonzalo Schwarz
March 1, 2013
in Blog

By GERALD P. O’DRISCOLL JR. Myths govern modern central banking. Like many myths, they contain an element of truth that has been distorted by exaggeration and misapplication. This year marks the 100th anniversary of the U.S. Federal Reserve System—an appropriate time for some long-overdue myth-busting. The first myth is that central banks are intrinsically necessary […]

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Will the U.S. Nationalize Gold Within its Borders?

Posted by Gonzalo Schwarz
February 25, 2013
in Blog

Money manager Peter Schiff predicts, “We are headed for a monetary crisis, a dollar crisis. . . . Money supplies are going to explode, and gold supplies are going to be constricted.” According to Schiff, that means only one thing, “The price of gold has one way to go in the long term, and that […]

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Two Awful Anniversaries: Income Tax and Federal Reserve

Posted by Gonzalo Schwarz
February 18, 2013
in Blog

by Steve Forbes This year marks the 100th anniversary of the federal income tax (February) and the Federal Reserve System (December), both of which today are doing immeasurable harm. And, thankfully, both will be undergoing enormous changes. Income taxes punish the very things we want more of: productive work, risk-taking and success. We can’t say […]

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Economists say independent Scotland ‘should keep pound’

Posted by Gonzalo Schwarz
February 15, 2013
in Blog

ByRachel Cooper The future currency of Scotland, assuming a “yes” vote in next year’s vote on independence, has been questioned by supporters and opponents. Some argue Scotland would have to adopt the euro as a consequence of gaining full EU statehood, while others have called for a new currency or retention of sterling. The Fiscal […]

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Virginia Takes First Step Toward Sound Money

Posted by Gonzalo Schwarz
February 11, 2013
in Blog

By Norm Singleton This week, the Virginia House of Delegates passed Delegate Bob Marshall’s HJ 590. This legislation authorizes a study of the feasibility of Virginia adopting a “metallic-based” “currency” to protect the citizens of the Old Dominion in the event of a collapse of the US Dollar. The legislation still has to pass the Virginia […]

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The Impossibility of Economic Calculation in a Fiat World

Posted by Gonzalo Schwarz
February 11, 2013
in Blog

By Alasdair Macleod The purpose of keeping accurate accounts is to quantify net worth at any given point in time – as well as the change from a prior date. It goes without saying that the measure used, money, should be constant if comparisons over time are to mean anything. Only then do prices of […]

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Yes Virginia, There Is A Constitutional Monetary Unit

Posted by Gonzalo Schwarz
February 5, 2013
in Blog

Last week, the Virginia House of Delegates Rules Committee passed, by an 11 – 1 bipartisan majority, a bill to establish “a joint subcommittee to study the feasibility of a United States monetary unit based on a metallic standard, in keeping with the constitutional precepts and our nation’s founding principles….”   Such a study could prove to […]

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Monetary Policy and Heightened Price Volatility in Raw Materials Markets

Posted by Gonzalo Schwarz
January 29, 2013
in Blog

By Robert Higgs Despite the Fed’s breathtaking increase of base money since the autumn of 2008, the money stock as measured by conventional concepts such as M2 has not increased greatly, and hence, as ordinary quantity-theory-of-money thinking would lead us to expect, inflation as measured by conventional concepts such as the consumer price index (CPI) […]

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Turkey’s Gold Policy

Posted by Gonzalo Schwarz
January 29, 2013
in Blog

by Adrian Ash AMID the brouhaha over Germany’s gold reserves at the Bundesbank, there’s another central bank using gold actively to bolster its currency and financial stability. The strategy looks the same – sitting on big stockpiles of the stuff. But the aim differs, because gold is much closer to the everyday financial system. The […]

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China: Money Matters

Posted by Gonzalo Schwarz
January 22, 2013
in Blog

By Steve H. Hanke Contrary to what the doomsters have been telling us, China’s economy is not on the verge of collapse. As the Wall Street Journal’s man in Beijing (and my former student), Aaron Back, reported: “China’s economic growth accelerated in the fourth quarter of 2012.” Indeed, China’s fourth quarter GDP growth rate came […]

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Money in Bad Faith

Posted by Gonzalo Schwarz
January 21, 2013
in Blog

The depredations of the Fed. by Judy Shelton The Federal Reserve is not your friend. Whether you reside on Wall Street or Main Street, whether you are a borrower or a saver, whether you lean toward the Tea Party or the Occupy Wall Street movement​—​or whether you simply believe in free markets and free people​—​loose […]

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Calling the Fed’s Bluff

Posted by Gonzalo Schwarz
January 10, 2013
in Blog

by Devin Roundtree Currently, the Federal Reserve is buying $45 billion in Treasury bonds in addition to $40 billion in mortgage backed securities a month. If you do the math, you end up with $1,020 billion on an annual basis. In order to calm inflation fears, the Fed claims that it can put the brakes […]

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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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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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