Wednesday, 13 December 2017

Author Archives Tom Duncan

“The State and 100 Percent Reserve Banking” – Selgin

Posted by Tom Duncan
May 31, 2011
in Blog

“Free bankers have been fighting a war on two fronts. On one they face champions of central banking and managed money. On the other they struggle against advocates of 100-percent reserve banking. Although the second front is a lot smaller than the first, it’s far from being unimportant, in part because the battle there is […]

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“A Note on the Machiavellian Origins of Central Banking in America” – QJAE

Posted by Tom Duncan
May 31, 2011
in Blog

“In The Mystery of Banking, Murray Rothbard explained how the origins of central banking in the U.S. were rooted in a lobbying effort by Robert Morris and other “nationalists” to create a bank modeled after the Bank of England that would subsidize their businesses with cheap credit and other forms of corporate welfare. This paper […]

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“Defense Spending No Longer ‘Sacred Cow’ to Republicans Searching for Cuts” – Bloomberg

Posted by Tom Duncan
May 31, 2011
in Blog

“As the House Budget Committee worked on a Republican plan to cut more than $6 trillion of government spending over a decade, the panel’s senior Democrat proposed a symbolic amendment saying national security costs should be included in any responsible deficit-reduction effort. Seventeen of 22 committee Republicans, including Chairman Paul Ryan of Wisconsin, joined all […]

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“Barney Frank’s Latest Bad Idea” – WSJ

Posted by Tom Duncan
May 31, 2011
in Blog

“Mr. Frank’s bill is simple and remarkably short by Washington standards: two pages. It would strike the language in Section 12A of the Federal Reserve Act that provides for voting membership by the New York Fed and rotating voting membership by the other 11 Federal Reserve banks on the Federal Open Market Committee (FOMC). Monetary […]

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“Hoenig Urges Fed to Raise Interest Rates to Encourage Saving” – Bloomberg

Posted by Tom Duncan
May 30, 2011
in Blog

“Federal Reserve Bank of Kansas City President Thomas Hoenig, the central bank’s longest-serving policy maker, said the U.S. needs to raise interest rates to encourage individuals to save and avoid future asset bubbles. Hoenig, who doesn’t vote on monetary policy this year, has repeatedly urged the central bank to tighten lending to prevent inflation and […]

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“Measuring Inflation: The Core is Rotten” – Bullard

Posted by Tom Duncan
May 25, 2011
in Blog

“Controlling overall inflation is a goal of monetary policy. Measures of overall, or headline, inflation attempt to include changes in the prices paid for a wide variety of goods—that is, what households actually have to pay for their daily purchases. This is a sensible notion of precisely what the central bank can and should control […]

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“Gold Bubble, Debt Bubble, or Both?” – Seeking Alpha

Posted by Tom Duncan
May 24, 2011
in Blog

“To begin, the national debt has provoked concern over the stability of US debt. Last month Standard and Poor’s revised its sovereign credit rating of the U.S. in the long-term from stable to negative. Last week the US reached its debt limit, which, justified or not, has perpetuated this anxiety. The cause of these fears […]

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“Ben Bernanke Loses Control of the Fed”

Posted by Tom Duncan
May 24, 2011
in Blog

“The Fed is blaming the earthquake in Japan for disrupting first quarter global growth, plus droughts and other natural disasters which didn’t help. The problem for Bernanke and his allies on the Fed is that hardly anyone is buying this argument. Most financial analysts, economists, and CEOs are blaming inflation for the global slowdown, and […]

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“The Return of Stagflation” – WSJ

Posted by Tom Duncan
May 24, 2011
in Blog

“‘Stagflation” is an ugly word for an ugly situation: persistent high inflation combined with high unemployment and stagnant demand in a country’s economy. The term was coined by British politician Iain Mcleod in a speech to Parliament in 1965. We haven’t experienced it here in the United States since the bad old days of the […]

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“Who’s Gonna Bail Out the Fed?” – Forbes

Posted by Tom Duncan
May 23, 2011
in Blog

“In ordinary times it would be ignorant to ask, “Who’s going to bail out the Fed?” — but then again these aren’t ordinary times. Solvency of the Federal Reserve Bank shouldn’t be an issue because it carries the full faith and credit of the United States of America. In theory, the only way the Fed […]

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“Drifting Back to Gold Standard” – Hindu Business Line

Posted by Tom Duncan
May 20, 2011
in Blog

“After 1914, the gold standard was given up and in the 1920s countries unabashedly resorted to unbridled fiat money resulting in hyper-inflation in a number of European countries. World War II resulted in the virtual demise of the sterling as a reserve currency, and since then the US dollar has held sway as the dominant […]

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“Partly Caused by Inflation, US Home Starts Stumbled in April” – Reed

Posted by Tom Duncan
May 19, 2011
in Blog

“The U.S. Consumer Price Index for April provided insight into one reason why the housing market is so quiet. While home prices have been showing steady erosion so far this year, as recorded by the S&P Case-Shiller index, the price level for a basket of consumer goods has been rising. April’s Consumer Price Index climbed […]

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“An Austrian Rehabilitation of the Phillips Curve” – Cato Journal

Posted by Tom Duncan
May 19, 2011
in Blog

“William Niskanen (2002) estimated a Phillips curve for the United States using annual 1960–2000 data. By adding one-year lagged terms in unemployment and infl ation, he was able to show that this familiar equation is misspecified. In his improved specification, Niskanen found that the immediate impact of inflation is to reduce unemployment, confirming the traditional […]

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“Fannie Mae, Freddie Mac, and the Future of Federal Housing Finance Policy” – Cato

Posted by Tom Duncan
May 18, 2011
in Blog

“The federal government recently placed Fannie Mae and Freddie Mac, the government chartered, privately owned mortgage finance companies, in conservatorship. These two massive companies are profit driven, but as government-sponsored enterprises (GSEs) they also have a government-mandated mission to provide liquidity and stability to the U.S. mortgage market and to achieve certain affordable housing goals. […]

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“The Federal Reserve System’s Influence on Research in Monetary Economics” – White

Posted by Tom Duncan
May 18, 2011
in Blog

“The Federal Reserve System is a major sponsor of monetary economics research by American economists. I provide some measures of the size of the Fed’s research program (both inputs and published outputs) and consider how the Fed’s sponsorship may directly and indirectly influence the character of academic research in monetary economics. In particular, I raise […]

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“How Fed Policy Has Cost America $170 Billion” – Money Rates

Posted by Tom Duncan
May 18, 2011
in Blog

“Could the U.S. economy use an extra $170 billion right about now? Though the economy has shown fitful signs of growth, that growth is still so fragile that it remains to be seen whether it can withstand setbacks such as the rising price of gasoline. So, an extra $170 billion in the pockets of American […]

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“Why the U.S. Needs to Stop Dodging the Debt Bullet” – Forbes

Posted by Tom Duncan
May 17, 2011
in Blog

“Practically speaking,a ceiling that is raised automatically is no ceiling at all. Given that, why not dispense with the pretense? The reason is politics. No Congressman wants to be on the record voting for unlimited debt, yet most are willing to rail against fiscal recklessness while raising the ceiling every time it’s reached. Any Congressman […]

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“Slow Growth, Inflation Makes US Bonds Bad Buy: Gross” – CNBC

Posted by Tom Duncan
May 16, 2011
in Blog

“The US economy is headed for a period of higher inflation and lower growth that makes the nation’s debt unappealing when measured against its global competitors, Pimco’s Bill Gross told CNBC. The head of the world’s largest bond firm, with nearly $1.3 trillion under management, explained the firm’s position further as it has cut out […]

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“How Would the Invisible Hand Handle Money?” – Selgin and White

Posted by Tom Duncan
May 13, 2011
in Blog

“It is easy to note what is absent from a pure laissez faire monetary regime. There is no government control of the quantity of exchange media. There is no state-sponsored central bank. There are not legal barriers to entry, branching, or exit of commercial banks (or non-bank financial institutions, assuming any distinction can be drawn). […]

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“Quantitative Uneasiness” – Freeman

Posted by Tom Duncan
May 13, 2011
in Blog

“The second problem with QE2 is that the Fed is stuck in an inappropriate economic model, which embodies the adage that when all you have is a hammer, every problem looks like a nail. The Fed really only has one policy tool: raising and lowering interest rates, whether short- or long-term. Therefore all economic problems […]

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“U.S. Government Spending Is the Biggest Threat to Economic Recovery” – Money Morning

Posted by Tom Duncan
May 12, 2011
in Blog

“Bernanke continues to dismiss inflation as a big U.S. economic concern, and the Fed decided last week to keep interest rates between 0.00% and 0.25% “for an extended period.” But U.S. consumers have complained that sky-high gasoline prices are eating away at household budgets and now some retailers are starting to raise prices. The U.S. […]

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“Vincent Reinhart on Bear Stearns, Lehman Brothers, and the Financial Crisis” – EconTalk

Posted by Tom Duncan
May 12, 2011
in Blog

“Vincent Reinhart of the American Enterprise Institute talks with EconTalk host Russ Roberts about the government interventions and non-interventions into financial markets in 2008. Conventional wisdom holds that the failure to intervene in the collapse of Lehman Brothers precipitated the crisis. Reinhart argues that the key event occurred months earlier when the government engineered a […]

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“The Upside-Down World of Modern Monetary Theory” – Murphy

Posted by Tom Duncan
May 11, 2011
in Blog

“Modern Monetary Theory (MMT) is a hip economic/financial paradigm apparently sweeping a world unsatisfied with mainstream economics. Over the past year, I have been hearing a growing number of people refer to MMT: either fans who think it blows up my Austrian views, or foes who think it deserves a full-scale critique. MMT’s underground popularity […]

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“Roosevelt’s Inflation Program in a Nutshell”

Posted by Tom Duncan
May 11, 2011
in Blog

“President Roosevelt’s second offensive against the depression has been launched in the form of an amendment to the farm bill. This amendment provides a manner in which the credit of the country will be expanded. Expansion of credit is expected to lead to increased business activity. Other features are expected to lead to what is […]

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“Forbes Predicts US Gold Standard Within 5 Years” – Human Events

Posted by Tom Duncan
May 11, 2011
in Blog

“A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS. “What seems astonishing today could become conventional wisdom in […]

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“Trichet Says Global Central Bankers Are United in Fighting Against Inflation” – Bloomberg

Posted by Tom Duncan
May 9, 2011
in Blog

“European Central Bank President Jean- Claude Trichet said the world’s central bankers are united in fighting inflation fueled by surging commodity prices and fast- growing emerging economies. “There is a solid unity of purpose of all central bankers concentrated on solidly anchoring inflation expectations,” Trichet said today in Basel, Switzerland, after chairing the Global Economy […]

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“Kazakhstan’s Bid to Influence Global Finance” – Euronews

Posted by Tom Duncan
May 6, 2011
in Blog

“What is needed most is global financial stability. Many worry that the dollar-centred monetary system is sick, leaving some to present radical proposals. Judy Shelton from Atlas Economic Research Foundation, a US think tank is one of these people: “We can’t have a sound monetary policy until we have sound finances. I hope the future […]

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Jansen on Bank Secrecy and Financial Privacy

Posted by Tom Duncan
May 6, 2011
in Blog

“J. Bradley Jansen spoke at the Mises Institute’s Austrian Scholar’s Conference in 2005 on bank secrecy and financial privacy.” See it here. Image by Michal Marcol / FreeDigitalPhotos.net.

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A Tiger by the Tail – Hayek

Posted by Tom Duncan
May 5, 2011
in Blog

“F.A. Hayek said that his biggest regret in a lifetime of writing was that he never wrote a book-length refutation of Keynesian economics. He seriously doubted that Keynesian style planning would ever captivate governments, so he focused on different things. Economist Sudha Shenoy decided to rectify the problem. As a Hayek scholar, she noted that […]

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“From Pleasant Deficit Spending to Unpleasant Sovereign Debt Crises” – White

Posted by Tom Duncan
May 5, 2011
in Blog

“Economists have long disagreed seriously about the costs and benefits of government budget deficits and debt. Following the Second World War, a clash between Keynesian and―orthodox fiscal policy views arose. The debate waned as fiscal Keynesianism won the day, then resumed as monetarist and new classical economists challenged Keynesian thinking in the 1970s. Economists became […]

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Hayek On Deflation – Coordination Problem

Posted by Tom Duncan
May 4, 2011
in Blog

Over on the Coordination Problem blog, a number of scholars in the field of monetary theory are having an interesting discussion on the topic of Hayek and deflationary spirals. I am providing the link. I recommend a thorough reading of the comments. The post is titled: Hayek on Deflation Steve Horwitz Coordination Problem, May 3, […]

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“Targeting Inflation at 2% Is Too Low” – DeLong

Posted by Tom Duncan
May 4, 2011
in Blog

“First, the question is not whether the Federal Reserve should raise its target inflation rate above 2% per year. The question is whether the Federal Reserve should raise its target inflation rate to 2% per year. On Wednesday afternoon, the Federal Reserve chairman, Ben Bernanke, stated that he was unwilling to undertake more stimulative policies […]

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“Can the Federal Reserve Print to Prosperity?” – Forbes

Posted by Tom Duncan
May 4, 2011
in Blog

“The side affect of all of the money supply and low interest rates is that commodity prices continue to rise, which is hitting the middle class rather hard. And with consumers making up 70% of the economy, this is a real drag on real economic growth. We have printed a lot of money but the […]

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“Bill Would Deny Fed Chiefs Interest Rate Votes” – Boston Globe

Posted by Tom Duncan
May 4, 2011
in Blog

“US Representative Barney Frank introduced a bill yesterday that would block the heads of Federal Reserve regional banks in Boston and elsewhere from voting when they serve on the Fed’s interest-rate-setting panel in Washington. The presidents of the regional banks take turns filling five of the 12 voting seats on the Federal Open Market Committee, […]

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“Can the Federal Reserve Print to Prosperity?”

Posted by Tom Duncan
May 3, 2011
in Blog

“The side affect of all of the money supply and low interest rates is that commodity prices continue to rise, which is hitting the middle class rather hard. And with consumers making up 70% of the economy, this is a real drag on real economic growth. We have printed a lot of money but the […]

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“Federal Reserve’s Politicization Is Dangerous”

Posted by Tom Duncan
May 2, 2011
in Blog

“It might help getting our minds around what is so wrong in America today by thinking about the local police force. It’s not hard to understand that the job of the police is to protect lives and property. Suppose we decided to broaden their mandate. Suppose each municipality decided that the job of the police […]

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“Inflation – What It Is, What It Isn’t” – Nasdaq

Posted by Tom Duncan
April 28, 2011
in Blog

“Depending on what you read, your political leanings, and philosophical beliefs, some scenarios like these could be on your mind. But reality is seldom that outrageous, so here is what I think will happen. First of all, prices are going up. Economists have underestimated increases because, whenever a trend emerges, the bean counters are always […]

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“Debt Limit Standoff: 10 Things to Watch” – The Hill

Posted by Tom Duncan
April 27, 2011
in Blog

“Republicans and Democrats on Capitol Hill are strategizing for what is expected to be a bruising debate on raising the nation’s debt limit and reining in government spending. The Obama administration has set an early-July deadline for lifting the $14.3 trillion debt ceiling, a move that congressional leaders agree must be done.But some Tea Party […]

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“Bernanke’s Code: A Guide to Fed Chairman’s First Q&A” – WSJ

Posted by Tom Duncan
April 27, 2011
in Blog

“When Federal Reserve Chairman Ben Bernanke makes his debut press conference Wednesday, his every word will be parsed for signs of where he hopes to take U.S. monetary policy. Specifically, many people want to know when the central bank will begin raising interest rates, and when it will begin off-loading some assets, including Treasurys and […]

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“Debt-Ceiling Strategies” – NRO

Posted by Tom Duncan
April 26, 2011
in Blog

“The conventional wisdom in Washington — on the left and among many on the right — is that the debt ceiling must be raised in order to avoid defaulting on the national debt, a potentially catastrophic scenario, the thought of which has business and financial leaders lobbying hard to raise the ceiling. Plenty of conservatives […]

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“Monetary Reform: The Key to Spending Restraint” – WSJ

Posted by Tom Duncan
April 26, 2011
in Blog

“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 informed for the task he has set himself. Nor has anyone developed a more comprehensive plan to reduce, and ultimately […]

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“Markets Get Ready to Navigate Fed’s Departure” – WSJ

Posted by Tom Duncan
April 25, 2011
in Blog

“Senior Fed officials believe they will be able to push up the fed-funds rate, the traditional benchmark for short-term interest rates, but not by the usual means of simply selling relatively small amounts of Treasury securities to soak up bank reserves. Instead, they are looking at a new tool, raising the interest rate that the […]

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“Why a Lack of Transparency in the Administration’s Budget II Is a Problem” – Taylor

Posted by Tom Duncan
April 21, 2011
in Blog

“A transparent budget proposal—such as the Administration’s first 2012 Budget presented by President Obama on February 14 or the House Budget presented by Paul Ryan on April 6—contains year-by-year tables showing the proposed path for government outlays over time. These are needed to estimate the economic impact of a budget and assess its credibility.” Read […]

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“A Good Exit Strategy Proposed by Philadelphia Fed President Plosser” – WSP

Posted by Tom Duncan
April 21, 2011
in Blog

“Previous statements about exits by Fed officials simply listed the tools that could be used in an exit strategy, but did not actually put forth an exit strategy. In contrast, President Plosser describes a specific strategy. Two things are very attractive about strategy. First, it aims is to return monetary policy to one in which […]

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“Gold Rises Above $1500 to a Record on Slumping Dollar, Inflation Concern” – Bloomberg

Posted by Tom Duncan
April 20, 2011
in Blog

“Gold rose above $1,500 an ounce to a record in New York and London as a weaker dollar and concern about debt and faster inflation spurred demand for an alternative investment. Silver reached a 31-year high. The dollar slipped as much as 1 percent against six major currencies, trading at a 16-month low, while a […]

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Why Washington only cut $38 billion: A Public Choice perspective

Posted by Tom Duncan
April 20, 2011
in Blog

“Why did politicians cut a trivial amount of money in the recent budget agreement? Prof. Ben Powell explains why politicians don’t cut spending, as a general rule. Using public choice economics, or the economics of politics, he shows how the political system naturally leads to overspending.” Watch it here. Why Washington only cut $38 billion: […]

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“Fed’s Monetary Stimulus Won’t Completely End in June” – Atlantic

Posted by Tom Duncan
April 20, 2011
in Blog

“In fact, there’s a big difference between the three scenarios before the Fed. One option would be to keep QE2 going after June, continuing to grow the Fed’s balance sheet. The second option would be to kill QE2, but keep QE1.5 intact, leaving the size of the Fed’s balance sheet unchanged. The third option would […]

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“Robust Political Economy and the Federal Reserve” – Boettke and Smith

Posted by Tom Duncan
April 20, 2011
in Blog

“The economics profession not only failed to predict the recent financial crisis, but has been struggling in its aftermath to reach a consensus on the cause(s) of the crisis. While competing narratives are being offered and evaluated, the narrow scope of the debate on strictly technical aspects of monetary policy has precluded the examination of […]

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“Fed Officials See Softer Q1, Inflation Risks” – Reuters

Posted by Tom Duncan
April 19, 2011
in Blog

“To Atlanta Fed President Dennis Lockhart, higher gas prices dampened consumer spirits and contributed to disappointing growth in the first quarter. High energy prices are likely to weigh on consumers and business for a while, he said. “It appears that the first quarter will come in soft relative to what we expected — what many […]

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Stop Printing Money, Inc.

Posted by Tom Duncan
April 18, 2011
in Blog

“America currently has $14 trillion in debt on the books and another $70 trillion or so in unfunded entitlements and pensions that are not yet on the books. These debts will never be repaid with dollars at current value. Either America will devalue its currency through inflation or it will default on its promises and […]

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