The Trillion Dollar Coin

There has been much buzz in the past few days about a truly horrible idea.  Instead of having to negotiate with Congress to raise the debt ceiling so the Treasury Department can sell more bonds to pay for more spending, why not just mint a trillion-dollar platinum coin?  This coin would contain one ounce of [...]

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NFIB Continues in Recessionary Mode, as the U.S.-Japan Analogy Plays Out

The National Federation of Independent Business is now out with its December survey results.  Given all the politics going on, the optimism/pessimism part of the survey is not worth commenting upon.  The actual earnings trends, however, are.  Here is the relevant graph (LINK):

For some reason, these companies have a baseline earnings trend of [...]

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Bernanke Loosens Up

This excellent article by Austrian theory economist Frank Shostak appeared Friday on Mises.org. — JH

Bernanke Loosens Up

December 21, 2012

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 [...]

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Macro Claus Wishing You A Merry Christmas

This wonderful video was produced by John Papola who produced the Fight of the Century (Hayek v. Keynes) videos with Russ Roberts. Here he gives us a Christmas gift on the fallacy of consumption as the road to wealth and prosperity. Enjoy!

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Our Malinvestment In President Obama Will Bring Painful Consequences

The choice for the status quo made in last week’s presidential election was an uninformed one—at no fault of the voters—made in the fog of monetary distortion and Federal Reserve Chairman Ben Bernanke’s continuous campaign of disinformation.

President Barack Obama managed to overtake Republican challenger Mitt Romney on the exit poll question “Who is better [...]

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Chaos

“Can an economy that has become dependent on lies, misrepresentation, ‘fudging’ of numbers, fraud, embezzlement and a multitude of skimming and scamming operations escape the moral and financial black hole it has created ? The self-evident answer is ‘no’.”

— Charles Hugh Smith, 28 August 2012, as quoted in [...]

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Fraud: Why The Great Recession

Free markets are not to be blamed for the Great Recession. On the contrary, its origins rest upon the deep government and central bank intervention in the economy. Through fraudulent mechanisms, this causes recurrent boom and bust cycles: bad policies create phases of irrational exuberance, which are then followed by economic recessions, a result [...]

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“The Bubble”

This may prove to be the best documentary to come out of the Crash of ’08. It is written by Tom Woods of the Mises Institute and is based on his best seller, Meltdown. Look for it. I’ll keep you informed when it will be released. Here is the trailer.

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Par For The Pathological Course

Economic policymakers are like children in that they are held only partially accountable for their mistakes and misdeeds. And just as children learn to selectively deny responsibility to get away with naughty behaviour, so policymakers learn that they, too, can conveniently disown the ‘unintended consequences’ of their actions. It is thus refreshing to see that [...]

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China’s Solution: Keynes or Mises?

This piece on China comes from the NY Times and is written by George Mason University professor Tyler Cowen. Professor Cowen famously has written why he is not an “Austrian” economist yet he hews closely to its ideas. In this piece he compares the Austrian economic theory analysis of China to [...]

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The Japan Syndrome

Before taking a multi-week break with family in which I intend to post only for major market action, it’s time for some review.  The macro theme in the U.S. economy and financial markets strikes me as just what I stated in one of my first blogs.  This is what I wrote on January 9, 2009 [...]

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